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We estimate short-term dividend strip prices from 27 years of S&P 500 index options data (1996-2022). We use option-implied interest rates when estimating strip prices and longer holding period returns to mitigate measurement error. We find that Sharpe ratios for short-term strips are similar to or higher than Sharpe ratios for the market. Short-term strips also have a low market beta and a positive alpha. Over the business cycle, realized term premiums (ie, the difference between market and strip returns) and the term structure of Sharpe ratios move countercyclically, whereas the term structure of alphas moves procyclically. [ABSTRACT FROM AUTHOR]

The debate over the impacts of shareholder value orientation on corporate management has been more intense with the increasing participation of institutional investors in companies' ownership structures. In this context, the purpose of this study is to evaluate the influence of institutional investors' shareholding on the payment of dividends in the oil industry. A regression model was used, estimated with the Generalized Method of Moments. The results indicated that the distribution of dividends is related to the profitability and the leverage of the companies, in addition to the history of distribution to shareholders. In general, the presence of institutional investors did not influence the dividend distribution. However, we observed a large participation of these investors in the ownership structure of companies in the oil and gas sector—the average control of these agents was around 25% in the companies of the sample. This study contributes to the literature regarding the influence of institutional investors on the corporate decisions of nonfinancial companies, being original in the context of the oil industry. [ABSTRACT FROM AUTHOR]

I show that cash distributions through cash mergers, dividend payments, and stock buybacks are, in principle, similar to investor fund flows in generating demand for investable assets. Abnormal returns on certain assets can be forecasted because delegated investors predictably reinvest cash returns toward certain holdings. Novel measures of stock-level demand constructed using proportional reinvestments by mutual funds predict abnormal returns and issuances in noncash-paying stocks. These results highlight an alternative and substantial source of price fluctuations in the cross section of equities. [ABSTRACT FROM AUTHOR]

We revisit the predictive ability of dividend changes for firms' future earnings and extend the literature by examining the effect of management forecasting ability. Although prior studies have examined the relationship between dividend changes and future earnings, the empirical evidence is mixed. The belief that dividend changes have implications for future earnings depends on the assumption that managers can accurately assess future earnings prospects. In this regard, we posit that the predictive ability of dividends can vary with managers' forecasting ability. Analyzing a large sample of Japanese dividend-paying firms, we find that dividend changes, particularly dividend increases, are positively associated with increases in future earnings. Consistent with our hypothesis, this positive association is more pronounced for firms with high-forecasting ability managers. Our findings support the signaling theory of dividend changes and indicate that management forecasting ability has a moderating effect on the linkage between firms' dividend changes and future earnings. [ABSTRACT FROM AUTHOR]

AbstractIn this paper, we investigate the dividend problem where the surplus process is inscribed by a perturbed dual risk model with a random time horizon, where a periodic threshold-type dividend strategy is applied to the surplus process. Under such a dividend strategy, if the surplus level is bigger than the maximum of threshold b and the last observed level (post-dividend) at dividend-decision times, then a fraction of the excess is paid off as a lump sum dividend. In addition, we assume that ruin can only occur at dividend-decision times. When the individual gains density has a rational Laplace transform, explicit expressions for the expected value of the present dividends before ruin are provided. Finally, numerical examples are presented to explore the effect of the parameters in the model on the dividend function. [ABSTRACT FROM AUTHOR]

Over the past 45 years, psychological scientists have invested a tremendous amount of effort into increasing the accuracy of suspect identifications from eyewitness lineup procedures. Those efforts have paid dividends, leading to the development of several practices that increase the accuracy of suspect identifications. Meanwhile, lineup rejections have largely been written off as lacking diagnostic value and little effort has been placed into understanding (1) why lineup rejections are less diagnostic than suspect identifications, and (2) how to increase the diagnostic value of lineup rejections. We show that preventing innocent-suspect identifications is not equivalent to demonstrating innocence and highlight several consequences of not being able to clear innocent suspects from police suspicion. We then review recent evidence, grounded in Signal Detection Theory, suggesting that lineup rejections are less diagnostic than suspect identifications because it is harder to reject a lineup of several faces than it is to identify a single face. When lineups are modified so that witnesses provide rejection ratings for each non-identified lineup member, rejection accuracy drastically increases. We highlight several questions for future research examining the potential for eyewitness memory to demonstrate innocence and question what impact suspect rejections might play in multiple-witness cases. [ABSTRACT FROM AUTHOR]

This article introduces the concept of a Natural Dividend and describes the three types of rent that combine to produce it: a differential rent, a regulatory rent, and a locational rent. Each of these rents is associated with a classical economist (Ricardo, Marx and George, respectively), and each is shown to be a product of nature, society and/or the political authorities that manage nature on our behalf. Because the Natural Dividend is a windfall derived from our regulation of commonly held (and immobile) natural resources, it can be taxed at a higher level without distorting any underlying investment decisions. [ABSTRACT FROM AUTHOR]

In this work, we examine the optimal periodic dividend problem with penalty payments for a diffusion model, where dividends are only paid at Poisson arrival times. Moreover, we assume that (observed) ruin or bankruptcy does not occur even if the surplus is negative, but the penalty payments happen. The goal is to seek an optimal periodic dividend strategy to maximize the expectation of the difference between the present value of dividends and penalty payments. We demonstrate that the optimal strategy is a periodic barrier strategy. For the exponential penalty function, the optimal periodic barrier and the explicit expression for the value function are determined. Several numerical instances are also presented. [ABSTRACT FROM AUTHOR]

This study examines the risk taking properties associated with incentive plans that use relative performance evaluation, with a focus on the form of payout, whether in cash or shares. By analyzing determinants and consequences of payout form choice, I find that share-based plans offer risk-averse managers weaker incentives to pursue projects with idiosyncratic risk compared with cash plans. This occurs because share plans—unlike cash plans—expose managers to systematic performance trends, as payout values are linked to stock prices. Additionally, I document that the variation in risk taking incentives depends on expected relative performance and the strength of the incentives. Overall, this study's findings suggest that commonly used share-based relative performance plans might not always motivate managers to pursue innovative projects with high idiosyncratic risk when projects with systematic risk are available. Data Availability: All data are available from the sources identified in the text. JEL Classifications: G30; J33; J41; M12; M41. [ABSTRACT FROM AUTHOR]

Research Summary: Investment growth in family firms is constrained by family preferences to retain corporate control, which limits outside equity issuance and increases the expropriation risk perceived by external minority shareholders. Tenure‐based voting rights (TVRs) weaken the link between voting rights and cash flow rights, facilitating new equity capital issuance without loss of control. We find that publicly listed family firms in Italy adopt TVRs to facilitate the continuation of investment growth while retaining family control. We also find that in family firms with fragile control, investment increases after TVR adoption. Our results indicate that control‐enhancing mechanisms such as TVRs can help resolve the control–growth dilemma in family firms. Managerial Summary: Family firms tend to invest less than other firms because funding new investment can lead to loss of family control. Tenure‐based voting rights (TVRs) reinforce the control of qualifying family shareholders, giving them extra shareholder voting power. Deviation from the one‐share‐one‐vote principle is generally regarded as detrimental to outside shareholders' interests. However, we find that TVR‐adopting Italian family firms invest more, pay higher dividends, are more profitable and have more outside shareholders on the board of directors. In other words, violation of the one‐share‐one‐vote rule using TVRs can benefit both family owners and outside shareholders. Policymakers could consider whether TVRs can help in promoting economic growth, especially in countries where family firms are important. [ABSTRACT FROM AUTHOR]

We examine the effect of auditing on dividends in small private firms. We hypothesize that auditing can constrain dividends by way of promoting accounting conservatism. We use register data on private Norwegian firms and random variation induced by the introduction of a policy allowing small private firms to forgo the use of an auditor to estimate the effect of auditing on dividend payout. Identification is obtained by a regression discontinuity around the arbitrary thresholds for the policy. Propensity score matching is used to create a balanced synthetic control. We consistently find that forgoing auditing led to a significant increase in dividends in small private firms. [ABSTRACT FROM AUTHOR]

This study uses large stock dividends (LSDs) of Chinese listed firms from 1999 to 2018 to study the purpose of their issuance. We find that turnover rate and stock liquidity do not increase significantly after LSDs are disbursed. Stocks respond positively to LSD announcements, whereas firms' buy-and-hold abnormal returns and operating performance deteriorate. Furthermore, managers first cater to investor sentiment by paying LSDs and then cash out their stockholdings for personal profit at the expense of shareholder wealth. The regulators in China and other emerging markets should protect investors' interests by preventing the potential abuse of LSDs. [ABSTRACT FROM AUTHOR]

This study investigates the influence of Dividend Yield on Stock Price Volatility in companies included in the IDX30 index on the Indonesia Stock Exchange (IDX) during the 2019-2023 period. Utilizing secondary data from annual reports of IDX30 companies, panel data regression analysis was conducted to examine the relationship between the variables. The findings reveal that Dividend Yield positively affects Stock Price Volatility, contradicting the initial hypothesis. The results indicate that an increase in Dividend Yield leads to higher Stock Price Volatility, while a decrease in Dividend Yield results in lower Stock Price Volatility. This research provides valuable insights for investors in understanding the dynamics between dividend policies and stock price fluctuations. [ABSTRACT FROM AUTHOR]

Participation in the Middle East Quad (I2U2) indicates that India, Israel, and the UAE are exercising "strategic autonomy" and have engineered a redirection of their foreign policy agendas. These countries no longer face any strategic dilemma in expanding their outreach, and formalising a transactional relationship for mutual strategic and geo-economic growth in the unstable and volatile Middle East. Is India's involvement in the Middle East Quad Group beneficial to its foreign policy, keeping in view it's cautious and 'hands-off approach' in the region? How far can these accords help in achieving regional stability? This paper attempts to answer these questions. It also deals with how India strikes a balance between the Abraham Accord countries and Iran, despite mutual rivalry in relation to several regional issues. This study observes that the Quad countries are driven by geo-strategic and geo-economic interests and exercise strategic autonomy in this transregional arrangement. This article employs analytical and interpretative methods through a forward-thinking conceptual framework centred on "strategic autonomy". It concludes that India's participation in this grouping does not hinder its ability to pursue relations with other countries, such as Iran, for its economic security. Rather, geopolitical shifts prompt national decisions on the part of different, even mutually confrontational actors, in a way that corresponds to the respective levels of their strategic autonomies or vulnerabilities. Strategic outcomes with peace dividends, such as regional multipolarity and economic diversification are identified as part of this process. such [ABSTRACT FROM AUTHOR]

We test the role of dividends and investor sentiment in the relation between idiosyncratic risk and expected returns because Pastor and Veronesi (J Financ 58:1749–1789, 2003) find evidence that dividends reduce firm-specific uncertainty by sending information to the market participants through dividends. Also, Baker and Wurgler (J Financ 61:1645–1680, 2006) document that the negative relation between idiosyncratic risk and expected return only exists under the optimistic sentiment. We first document that the negative relation between idiosyncratic risk and expected return is more concentrated for stocks without dividends than stocks with dividends. We further find that the role of dividends in the relation between idiosyncratic risk and expected return is not affected by investor sentiment. These findings are robust to weighing schemes of returns and firm characteristics such as beta, size, book-to-market ratio, momentum, and liquidity. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to provide insights into different aspects of the extant literature on the effects of dividend announcements. Along with other outputs of a bibliometric study, this study provides deeper insights into the concentration of the extant literature and suggest future research agendas. Design/methodology/approach: This study uses the bibliometric, network and content analysis of the dividend announcement literature indexed in Scopus. This study presents the temporal analysis, the network of authors, countries, author citations and the co-occurrence of author keywords. This study provides the concentration of the extant literature in three clusters and unearth some key future research areas. This study uses the latent Dirichlet allocation method for robustness. Findings: A total of 54 documents examining the US sample have received 1,804 citations. Interestingly, the first article on emerging markets was published in 2002, when at least 34 articles on developed markets had already been published from 1982 to 2001. The content analysis of top-cited literature unveils diverse insights into dividend announcements' effects on financial markets. Contagion effects negatively impact non-announcing banks, particularly larger ones. Dividend maintenance affects stock market momentum, influencing loser returns. While current dividend/earnings news may not predict future company performance, information content dominates bond market reactions to post-dividend announcements. Concomitantly, while financially constrained firms exhibit short-term gains but worse long-term performance following dividend increases, larger stock dividends send stronger market signals in China. Originality/value: This study significantly contributes to the bibliometric and content analysis literature by analyzing the sample documents based on the sample examined. To the best of the authors' knowledge, no previous bibliometric study in this domain has been conducted to explore the markets (developed and emerging) to which the samples examined belong and the quality of publications from developed and emerging markets. [ABSTRACT FROM AUTHOR]

Based on the panel data of 96 countries from 2013 to 2020, this study innovatively adopts the TIMG index to measure global digital economy (DE) and examines the impact of DE on carbon emissions. We find that there is an inverted U-shaped relationship between DE and carbon emissions, and energy intensity is the mediating channel. Heterogeneity analysis reveals that lower-middle-income countries can enter the 'carbon reduction dividend stage' of DE faster than high-income and upper-middle-income countries. Our findings provide empirical evidence and policy references for effectively utilizing DE for carbon reduction. [ABSTRACT FROM AUTHOR]

Leveraging branch‐level data on bank deposits, we provide evidence of a negative impact of branching restrictions on payout ratios, which occurs only for banks with a low charter value, as proxied by the market‐to‐book ratio. The results for the market‐to‐book ratio extend to the Lerner index, the return on assets, and the Z‐score, suggesting that risk‐shifting incentives drive our results rather than signaling incentives or agency costs. Our results are robust to different proxies for banking competition and identification strategies, and bootstrap simulations suggest that our results are not due to confounding factors. [ABSTRACT FROM AUTHOR]

Corporate dividend policy is a puzzle, especially when considering the effects of economic and behavioural factors. We develop a theoretical analysis of corporate dividend policy in order to analyse the effects of the complex mix of managerial moral hazard, overconfidence, and myopia on managerial incentives to increase or decrease dividends. Furthermore, we consider the effect of investor irrationality that drives corporate dividend catering behaviour. We investigate how this complex mix of economic and behavioural factors is likely to affect dividend policy. Our analysis provides a deep theoretical underpinning to understanding these effects and provides a basis for future empirical research. [ABSTRACT FROM AUTHOR]

Given the inability of any known concept or theory to adequately explain Africa's democratic experience from the Nigerian context, the rationales behind this paper were to: contrive a new concept befitting Nigerian democracy, develop a theory that describes the country's democracy, and interrogate the upsetting phenomena surrounding Nigeria's democracy which culminated into the new type of democracy. A qualitative design was used to collect and analyze related data for the study. The paper created and developed cancerous democracy and cancerous democratic theory (CDT) to capture and explain Nigeria's democracy. Demonstrating that Nigeria is an illustrative case for other African situations, this study examined pathologies that denied Africans the anticipated dividends of democracy. Results demonstrated that security issues, perennial corruption, mismanagement of diversity, bad governance, and poorly executed federal character principle made Nigeria's democracy a cancerous type of democracy. Hence, this paper accepted the alternative proposition - the major upsetting phenomena surrounding Nigeria's democracy are more inclined to prevent her from moving from a stagnated polity to a problem-solving state. Conclusively, Nigeria is not practicing true democracy, because of the interplay of ethno-religious issues and the country's departure from modern democratic ethos. Therefore, joint efforts should be made to stampede corruption and ethnicity in order to reposition Nigeria to be an egalitarian and developmental state with zero tolerance for the trappings of cancerous democracy. [ABSTRACT FROM AUTHOR]

This paper examines the institutional determinants shaping the dividend policy of 357 non-financial firms listed across 13 African markets. Utilising panel data estimation techniques, our findings indicate that weaker investor protection, increased financial development, high GDP growth, and greater press freedom are linked to higher dividend payouts, while corruption and property rights protection show no significant effects. Notably, financial market development positively impacts dividend policy, whereas the development of financial institutions does not. Policymakers should prioritise several key areas: strengthening investor protection to encourage diverse value creation and improve governance; enhancing financial market development to increase capital access and market efficiency; supporting press freedom to promote transparency and accountability; and fostering GDP growth to improve firm performance and boost dividend distributions. A balanced approach integrating financial development, press freedom, and economic growth is essential for optimising dividend policies and advancing sustainable economic development in Africa. [ABSTRACT FROM AUTHOR]

We introduce a new demographic indicator, the remittances‐adjusted support ratio (RASR), which incorporates the support offered through remittances into the existing support ratio (SR). Remittances have increased rapidly in recent decades due to improved technology, and they play a crucial role in the countries that send migrants abroad. This is important as many countries are still undergoing their demographic transitions, and here remittances are particularly relevant. Our formulation of the RASR suggests an alternative in which population pressures are alleviated through migration, but where migrants send remittances and thus provide support without being present in their home countries. We show that the RASR has diverged substantially from the SR in a range of countries during the last three decades. The RASR, therefore, offers new insight into economic and demographic support and constitutes a useful tool for policymakers and researchers in the 21st century. [ABSTRACT FROM AUTHOR]

Purpose: To analyze the behavior of the dividend distribution of publicly traded Brazilian companies according to the effects of the business cycles, comparing the stages of recovery, expansion, recession, and contraction (Schumpeter, 1935) with the stages of expansion and recession according to the National Bureau of Economic Research (NBER). Originality/value: According to Schumpeter (1935), classifying the stages of the business cycle presents greater details to the NBER method because the four stages show different characteristics that are not observed when only the two stages of the NBER model are used. Design/methodology/approach: Information was collected from 243 publicly traded companies listed on the Brazilian Stock Exchange between 1997 and 2021 to achieve the research objective. Data were obtained from the Refinitiv database, using panel data regression models with random effects to analyze two hypotheses defined in this study. The hypotheses state that the behavior of the relationship between the payment of dividends and the stages of the NBER’s bearish (high) business cycles is different from the recession and contraction stages (recovery and expansion), according to Schumpeter. Findings: The results indicated the non-rejection of the hypotheses, reinforcing the importance of the analysis of the four stages of the business cycles and complementary form by investors, analysts, managers, and other users when analyzing the payment of dividends by publicly held companies at the different levels of economic activity in the country. [ABSTRACT FROM AUTHOR]

We investigated whether carbon taxes with and without carbon dividends improve cooperative behavior to mitigate simulated climate change. We implemented a randomized controlled trial on a large sample of the U.S. general population (N = 2 , 116). Played in real-time in groups of four, we tested three carbon-pricing treatments and a baseline condition within a modified threshold public goods game of loss avoidance. We found that a carbon tax coupled with carbon dividends reduces carbon-emitting group consumption relative to a baseline condition with no tax, and relative to a carbon tax only. A carbon tax coupled with carbon dividends paid out to below-average polluters (asymmetric dividend) worked best, with 94% of groups remaining below a critical consumption (emission) threshold. We also found that experiencing the asymmetric dividend condition positively affected perceptions of carbon pricing with carbon dividends. [ABSTRACT FROM AUTHOR]

This paper assesses the performance of democratic leadership in the Nigerian state in sub-Saharan Africa to determine if democracy dividends accrue to the citizens. The study suggests that in the fight against corruption, the government must guarantee the independence of the anticorruption institutions and fix the socioeconomic factors plaguing the nation. Evidence from the descriptive statistical outputs of the moderator factors such as corruption, inflation, infrastructure and insecurity suggests a deleterious moderation in the relationship between 'democratic leadership performance' and 'democracy dividends'. Thus, the diminutive influence of the former on the latter potentially leaves the citizens vulnerable. [ABSTRACT FROM AUTHOR]

The authors estimate the tax alpha of an S&P 500 direct index strategy with tax loss harvesting over a 60-year horizon including the effects of dividend reinvestment, unqualified dividends, corporate actions, and management fees. The authors estimate the impact of relaxing the key assumptions of unlimited short-term gains, reinvestment of tax savings, and maximum tax rates. The authors find that realized gains from cash acquisitions offset realizable losses at long horizons and that management fees can render tax loss harvesting inferior to an index ETF even under the most favorable assumptions. [ABSTRACT FROM AUTHOR]

In this study, we derived pricing formulas for various forward-start style exotic options based on an uncertain stock models with periodic dividends. Specifically, we present valuations for forward-start, Cliquet/Ratchet, and spread options. In addition, we conducted numerical simulations of these formulas and compared them to pricing formulas for the same options based on a dividendpaying stock model driven by standard Brownian motion. [ABSTRACT FROM AUTHOR]

This study investigates the relationship between ownership structures and dividend policies for 46 Islamic and 75 conventional banks from 12 MENA and Asian countries between 2012 and 2020. Logit regression is employed to estimate the regression equation, centering on the moderating impacts of the COVID-19 pandemic and national culture. Our findings remain robust as we tackle the endogeneity issue using probit and logistic regression models. Asset growth and GDP growth serve as proxies for investment opportunities. Additionally, dividend per share acts as a proxy for dividend policy. Our findings emphasize how the ownership structure impacts dividend payouts in both banking systems. We observed positive relationships between dividend payouts and foreign ownership, bank size, age, and performance. Conversely, concentration of ownership and leverage negatively influence dividend payouts. The COVID-19 pandemic directly boosts the dividend policy for conventional banks and alters the relationship between foreign ownership and distribution policy in Islamic banks. Specifically, COVID-19 interacts with foreign and state ownership to reduce dividend payouts, but concentration of ownership does not show this effect. This study furnishes evidence affirming the significance of the ownership structure in shaping the dividend payout policy within Islamic and conventional banking. The results maintain their reliability across various estimation approaches. Moreover, this study accounts for the crisis period as a moderating factor influencing dividend payments. [ABSTRACT FROM AUTHOR]

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Dividend policy is not set de novo each year, but dividends are smoothed from one year to the next, leading to a short-term persistent component. In this paper, we investigate whether there is also long-run persistence in dividend policy, by using a unique sample of firms listed on the Brussels Stock Exchange since 1824. We show that dividend smoothing leads to a long-term persistent component in dividend policy, as we find evidence that the initial dividend policy, as measured in the first calendar year after listing, has a long-lasting effect on future dividend policy. Although this effect persists for many years, it fades away over time. When this happens, a new slowly changing dividend policy emerges. [ABSTRACT FROM AUTHOR]

We consider De Finetti's control problem for absolutely continuous strategies with control rates bounded by a concave function and prove that a generalized mean-reverting strategy is optimal in a Brownian model. In order to solve this problem, we need to deal with a nonlinear Ornstein–Uhlenbeck process. Despite the level of generality of the bound imposed on the rate, an explicit expression for the value function is obtained up to the evaluation of two functions. This optimal control problem has, as special cases, those solved in Jeanblanc-Picqué and Shiryaev (1995) and Renaud and Simard (2021) when the control rate is bounded by a constant and a linear function, respectively. [ABSTRACT FROM AUTHOR]

The article studies acute transformations of today’s stock market in Russia connected with the objective necessity of its sovereignization and redomiciliation of shares of Russian issuers. Specific features of these processes, risks and trends were identified and authors’ characteristics of factors that can affect the stock market dynamics were provided. The risk of prolonged keeping of a high key interest rate is marked as a principle one, while its impact has not so far brought serious results for inflation rate curbing, it influences the rise in interest rates on corporate borrowing market. A new interpretation of Russian share market and key interest rate movement was put forward, as well as characteristics of their interconnection proceeding from behavior grounds of home investors. All aspects of redomiciliation of shares of Russian issuers were analyzed as a key trend in sovereignization of home stock market. Participants’ interests in the process of redomiciliation were specified and risks of its impact on price trends on Russian share market were highlighted. The influence of redomiciliation on dividend history of home share market was analyzed. Special attention was paid to underestimation of home share market and possible impact of redomiciliation on dynamics of market share evaluation. According to the authors, shaping the sector of highly technological company shares is a stable trend in sovereignization of home stock market.

We study the role of state controlling shareholders in corporate payout policy. The State Capital Operation Program in China requires parent central state-owned enterprises (CSOEs) to contribute part of their consolidated income to a new fiscal fund. We find that listed CSOEs, partially controlled by parent CSOEs, experience significant reductions in dividend payouts as the income-contribution ratio increases. The dividend reductions are concurrent with increases in intragroup resource transfers— listed CSOEs' loans to, and commercial trades with, group peers. The program yields adverse consequences for listed CSOEs' investment and employment, yet being mitigated by group-level dividend reductions. [ABSTRACT FROM AUTHOR]

For a firm that cannot raise external funds, cash on hand serves as precautionary saving. We derive a closed-form expression for the target level of cash on hand in the presence of persistent cash flows. Contrary to conventional wisdom, a mean-preserving increase in the volatility of cash flow can decrease this target. Over the set of admissible parameter values, the average impact of volatility on the target is zero. Endogenous selection, reflecting termination of firms that run out of cash, leads to a positive average impact of volatility on the target level of cash, consistent with empirical findings. [ABSTRACT FROM AUTHOR]

Corporations have accumulated record amounts of cash. We study whether firms' cash retention has been excessive by examining a Korean reform that introduced a new tax on earnings retained as cash. Difference-in-differences tests show that treated firms reduce cash retention and instead increase payouts and investments. Market participants react favorably to the reform, consistent with excessive cash retention. The valuation effects and the alternative uses of the cash are associated with behavioral and agency frictions. Firms that are more subject to behavioral biases increase payouts and experience higher valuations, while poorly governed firms allocate more to investment and experience relatively lower valuations. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

We empirically evaluate 20 prominent contributions across a broad range of areas in the empirical corporate finance literature. We assemble the necessary data and apply a single, simple econometric method, the connected-groups approach of Abowd et al. to appraise the extent to which prevailing empirical specifications explain variation of the dependent variable, differ in composition of fit arising from various classes of independent variables, and exhibit resistance to omitted variable bias and other endogeneity problems. We assess empirical performance across a wide spectrum of areas in corporate finance and indicate varying research opportunities for empiricists and theorists. [ABSTRACT FROM AUTHOR]

In cloud environment, designing the efficient outsourced calculation protocols to serve the machine learning or data mining is a hot topic. At the same time, homomorphic encryption allows operations on encrypted data, and is a natural primitive to implement outsourced computation. Most existing protocols consider all operands being secret data. While in practice, the operations may occur between public data and private data since some of them is publicly known to all, and only partial data is confidential. To address the partially encrypted computation, it is necessary to design new protocols. In this paper, we consider the integer division calculation and design two protocols based on the partial homomorphic encryption, one of which caters to the division with public divisor and private dividend, and the other caters to the division with public dividend and private divisor. The quotient and the remainder are computed in ciphertext. The security of the protocols is proved within the ideal/real paradigm, and the performance analysis shows the efficiency of the protocols compared with the full-encrypted division [ABSTRACT FROM AUTHOR]

The unequal distribution of dividends implies the unequal distribution of the profit share of workers' product of labor. In a Mirrleesian framework when dividends cannot be expropriated, we show that a progressive distribution of dividends creates a positive dividend effect on labor income taxes. Our numerical simulations show the dividend effect to be approximately four percentage points. We analyze the dividend effect under different market structures and its interplay with other forms of taxation. [ABSTRACT FROM AUTHOR]

The contradiction between the economy and the environment becomes acute as the increasing ecological constraints. It is thus necessary to improve environmental performance and realize the economic‐ecological double dividend. To achieve that, co‐operative efforts are needed on both production and governance sides, particularly industrial agglomeration and environmental regulation. Based on provincial sections in China spanning 2006 to 2020, we explore the effects of industrial agglomeration and environmental regulation on environmental performance, exploiting a two‐way fixed effects model. We also illustrate the potential channels and interactive effects between industrial agglomeration and environmental regulation. The results indicate an inverted U‐shaped nexus between industrial agglomeration and environmental performance, while environmental regulation favors environmental performance. Green innovation, factor allocation, deepening of division of labor, and industrial structure upgrading are plausible channels. Besides, we discover the interaction between industrial agglomeration and environmental regulation, where environmental regulation reduces the inflection point of industrial agglomeration, and industrial agglomeration improves the effectiveness of environmental regulation. Our work sheds light on the synergy between production and governance sides, which offers insights into green transition for China and other newly industrialized economies. [ABSTRACT FROM AUTHOR]

This inquiry investigates the moderating role of board size (BS), board independence (BI), and board gender diversity (BGD) on the relationship between dividend policy (DP) and firm performance (FP) in Ghana. The study utilized financial data from 14 purposively selected listed firms in Ghana, spanning 2010–2018. A system-generalized method of moments (GMM) was espoused for the estimation. Results indicate that whilst dividend per share and dividend payout ratio demonstrated significantly positive relationship with FP, dividend yield exhibited significantly negative relationship with FP. Additionally, while BI moderated the relationship between DP and FP, BS and BGD had no moderating influence on FP. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study explores the value of the tax deferral option. By examining ex-day stock-price-change ratios for taxable stock dividends in Taiwan, we find that the tax deferral option is valuable to investors. For a $1 taxable stock dividend, the tax deferral option produces 33.9 ¢ in tax savings, which suggests a tax deferral parameter of 11.3%. We also find that stocks with the tax deferral option have higher trading volumes around ex-days than those without this option, and that higher investor-level tax rates lead to higher value of the tax deferral option. We contribute to the literature by cleanly determining the value of the tax deferral option; our result is not confounded by the restart option. [ABSTRACT FROM AUTHOR]