Declining propensity to pay? A re-examination of the lifecycle theory

Autor:	Monica Banyi, Kathleen M. Kahle
Rok vydání:	2014
Předmět:	Economics and Econometrics Strategy and Management media_common.quotation_subject Dividend tax Capital (economics) Cohort Economics Dividend Demographic economics Business and International Management Function (engineering) Initial public offering Finance media_common
Zdroj:	Journal of Corporate Finance. 27:345-366
ISSN:	0929-1199
DOI:	10.1016/j.jcorpfin.2014.06.001
Popis:	Our results indicate that the declining propensity to pay is a function of the changing composition of firms over time and not a declining propensity in individual firms themselves. In particular, the propensity to pay is greater than expected following the 2003 dividend tax cut. The decade a firm went public is also a major determinant of its initial payout policy. Finally, while the strength of the relation between earned/contributed capital and payout propensity declines across IPO decades, there is still a lifecycle effect — within a given IPO cohort, the likelihood of payout increases as firms age.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::8330117c4d68af2614d4491a58a7ada5 https://doi.org/10.1016/j.jcorpfin.2014.06.001 Zobrazit plný text záznamu Full Text from ScienceDirect