Arbeitspapier

The Lintner model revisited: Dividends versus total payouts

We analyze how the introduction of repurchases in 1998, and a major tax reform in 2001, affected the payout policy of German firms. To this end, we estimate Lintner (1956) partial adjustment models for both dividends and total payouts. We also analyze the implications for payout of changes in both permanent and transitory earnings. Our results are inconsistent with the hypothesis that dividends and repurchases are perfect substitutes. They are also inconsistent with the prediction that tax considerations are a major driver of payout decisions. Our results instead support the flexibility hypothesis that predicts that dividends are used to disburse permanent, and repurchases transitory, earnings.

Sprache
Englisch

Erschienen in
Series: CFR Working Paper ; No. 14-02

Klassifikation
Wirtschaft
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
Payout Policy
Thema
Dividends
Repurchases
Lintner model

Ereignis
Geistige Schöpfung
(wer)
Andres, Christian
Doumet, Markus
Fernau, Erik
Theissen, Erik
Ereignis
Veröffentlichung
(wer)
University of Cologne, Centre for Financial Research (CFR)
(wo)
Cologne
(wann)
2013

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Andres, Christian
  • Doumet, Markus
  • Fernau, Erik
  • Theissen, Erik
  • University of Cologne, Centre for Financial Research (CFR)

Entstanden

  • 2013

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