Please use this identifier to cite or link to this item:
|Title:||Large dividend increases and leverage||Authors:||Cooper, Ian A.
|Major Field of Science:||Social Sciences||Field Category:||Economics and Business||Keywords:||Capital structure;Dividend policy;Dividend changes;Leverage||Issue Date:||Feb-2018||Source:||Journal of Corporate Finance, 2018, vol. 48, pp. 17-33||Volume:||48||Start page:||17||End page:||33||Journal:||Journal of Corporate Finance||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.||ISSN:||0929-1199||DOI:||10.1016/j.jcorpfin.2017.10.011||Rights:||© Elsevier||Type:||Article||Affiliation :||London Business School
Cyprus University of Technology
|Appears in Collections:||Άρθρα/Articles|
checked on Aug 31, 2020
WEB OF SCIENCETM
checked on Sep 16, 2020
Page view(s) 50111
checked on Sep 20, 2020
Items in KTISIS are protected by copyright, with all rights reserved, unless otherwise indicated.