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|Title:||Large dividend increases and leverage||Authors:||Cooper, Ian A.
|Keywords:||Capital structure;Dividend policy;Dividend changes;Leverage||Category:||Economics and Business||Field:||Social Sciences||Issue Date:||1-Feb-2018||Publisher:||Elsevier B.V.||Source:||Journal of Corporate Finance, 2018, Volume 48, Pages 17-33||DOI:||https://doi.org/10.1016/j.jcorpfin.2017.10.011||Abstract:||This study documents the fact that large dividend increases are followed by a significant increase in leverage, consistent with management increasing the dividend to use up excess debt capacity. However, the leverage increase is not captured by a standard partial adjustment model of leverage. Nor does it reflect variables known to be related to dividend increases, such as firm maturity, investment, and risk. Instead, the dividend increase signals a complex change in the way firms adjust to their leverage target, but it does not signal a change in the target.||URI:||http://ktisis.cut.ac.cy/handle/10488/10967||ISSN:||09291199||Rights:||© 2017 Elsevier B.V.||Type:||Article|
|Appears in Collections:||Άρθρα/Articles|
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