Review of: the Evolving Relation Between Earnings, Dividends, and Stock Repurchases

2.) Name of the composing: The evolving relation amongst payment, dividends, and stock(a) repurchases Author(s): Douglas J. mule driver University of Chicago, ammonium alum School of Business Year of publication: 2008 Name of book: Journal of Financial Economics Page count for paper: 28 pages (pages 582-609 in JFEC) 3.) The main research straits is: are stock repurchases being intentd as a shift for dividends? The fountain hypothesizes that repurchases are exceedingly more common than dividends in wrong of compensateouts. 4.) This question is important because it sheds light on the future(a) payout policies of firms. Since it is hard-fought for firms to pay dividends when they report losses, managers are favoring stock repurchases once they became a viable form of payout in the 1980s. We should care approximately this question as Finance and Management students because of its impact on payout insurance decisions. If we are ever in the posit ion of influencing, or hitherto making such decisions, it is crucial to understand the benefits of substituting dividend payouts with repurchases. mule skinner claims that firms that continue to pay dividends do so because of history. If thats the case, so as we begin to fill the administrator shoes of the world, perhaps our firms dont need to pay dividends? 5.

) Skinners data is derived from Compustat Industrial Annual, as do available by WRDS. The data used allows Skinner to use Lintner model regressions to get wind the relation between these firms full(a) payouts (dividends and repurchases) and earnin gs and find that, as predicted, repurchases ! adjust quickly to earnings changes while the relation between earnings and dividends becomes weak. (Skinner, 2008) He also uses this compiled data to pick out the 3 polar groups conveyed in his hypothesis. 6.) The data used by Skinner covers old age 1980 2005. 7.) When I read these articles, I perpetually believe researchers bed exactly what theyre going to say...If you indispensability to get a full essay, order it on our website: OrderCustomPaper.com

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