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dc.contributor.authorDavid, Thomas*
dc.contributor.authorGinglinger, Edith*
dc.date.accessioned2015-06-15T15:15:48Z
dc.date.available2015-06-15T15:15:48Z
dc.date.issued2015
dc.identifier.urihttps://basepub.dauphine.fr/handle/123456789/15219
dc.language.isoenen
dc.subjectLong-term investors
dc.subjectDividend cuts
dc.subjectMonitoring
dc.subjectSEOs
dc.subjectScrip dividends
dc.subjectStock dividends
dc.subjectDividends
dc.subject.ddc332en
dc.subject.classificationjelG.G3.G35en
dc.subject.classificationjelG.G3.G32en
dc.titleWhen Cutting Dividends Is Not Bad News: The Case Of Optional Stock Dividends
dc.typeCommunication / Conférence
dc.description.abstractenThis paper provides new evidence on dividend policy by studying optional stock dividends, a mechanism that allows firms to cut cash payouts without a negative market reaction. We find that highly leveraged firms with limited cash holdings and large institutional ownership are more likely to offer optional stock dividends to their hareholders. These firms are the most committed to paying dividends, and optional stock dividends provide them with an opportunity for a stealth cut in dividends during economic downturns. Shareholders overwhelmingly approve optional stock dividends at general meetings with the majority favoring stock dividends over cash dividends. Further, in contrast to dividend cuts, shareholders do not view optional stock dividends as bad news. Our results support the monitoring explanation of optional stock dividends and show that shareholders value a firm’s ability and willingness to pay dividends, even if the final cash payout is reduced.
dc.subject.ddclabelEconomie financièreen
dc.relation.conftitle32nd International Conference of the French Finance Association - AFFI 2015
dc.relation.confdate2015-06
dc.relation.confcityCergy
dc.relation.confcountryFRANCE
dc.relation.forthcomingnonen
dc.description.ssrncandidatenon
dc.description.halcandidateoui
dc.description.readershiprecherche
dc.description.audienceInternational
dc.date.updated2017-11-17T14:53:36Z
hal.person.labIds1032*
hal.person.labIds1032*
hal.identifierhal-01637541*


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