Thesis--Wisconsin. / Vita. Includes bibliographical references (leaves 215-218).

The objective of this thesis is to investigate the numerous aspects of the dividend decision with emphasis on the Canadian situation. Theoretical developments, investors' attitudes towards dividends, and decision criteria to establish the amount are three areas requiring further work. Both old and new unique approaches are utilized in this thesis to elucidate these problem areas. The importance of the dividend decision to the shareholder, the firm, and the economy is first established. Variations in inter-industry ratios and in payout trends are then examined and explained to provide an environment for the subsequent studies. The objectives of the chapter on theory are to sort, relate, and extend (also, to examine the pragmatic implications of) the available and pertinent, theoretical and empirical contributions. The relationship between dividend decision making and traditional theory on capital structure is first described. Extensions thereof and alternative proposals follow. Strict adherence to theory is suggested to be impractical. The Modigliani and Miller approach that dividends have no bearing on cost of capital or share price and are therefore not important is refuted by: 1) logically arranging, and concluding from, criticisms of their-cost of capital argument; 2) examining, consolidating, and validating the early theory that stock values (unlevered equity) are determined by capitalizing a dividend stream; 3) citing results of the published statistical studies, none of which indicate that the pure earnings hypothesis is correct; 4) examining in greater detail the logic presented by the authors. The importance of (1) informational contents as a link between a change in dividends and a change in share price and (2) the length of time following dividend changes is substantiated by analysis of three studies and observation of companies involved in those studies. To determine Canadian investors' attitudes to dividends, four studies, each using paired data (1961 to 1965) from up to 144 Canadian companies, were undertaken. Firms were paired on the basis of financial similarity, especially growth, and payout difference to set apart dividends as a factor influencing the price-earnings ratio. The study using very closely paired stocks was deemed most significant because growth and other comparative measures are almost completely isolated. The results indicate (1) that investors are rational in their attitude to dividend policy (that is, they desire shares of a company that retains earnings if the return on those earnings is demonstrated to be high) and (2) that certain growth firms may increase the market price of their stock in the long-run by lowering their dividend. The dividend decision in practice is then investigated. Legal and discretionary elements are presented. Results of the questionnaire, sent to fifty directors of Canadian companies, show that (1) net profit, (2) present and anticipated need for cash, (3) planned investment projects, (4) past dividends, and (5) expected growth and variability in earnings and sales are considered most important; competitors' payout and existence of control groups, least important. Answers to questions on (1) the existence of a target payout, (2) the primary dividend decision, and (3) important features of a sound policy, as well as additional comments by respondents, provide further insight into the decision procedure. Lintner's classic dividend model is then examined and criticized to establish, with the aid of the questionnaire results, three dividend models which are put in the form of regression equations and tested on appropriate Canadian data in order to elucidate the decision process. Subsequent analyses indicate that profits and company size are consistently and highly significant; long-term debt, future prospects, and depreciation show less consistent but significant influence; investment and cash-need variables are less significant; degree of liquidity and conservatism show no relationship. The dividend decision is then examined at the level of aggregate economics to consider the impact of aggregate variables, and in conjunction with these, government macro-economic policy. This investigation supports the questionnaire conclusions. / Business, Sauder School of / Graduate

This thesis explores two facets of the Miller-Modigliani theorem; dividend irrelevance and value additivity. We explore these concepts in the capital market using a derivative asset recently introduced and a Black-Scholes option pricing model modified for different marginal tax rates. This technology was used to solve for the retention rates for dividend and capital gains implied in these instruments. These implied rates do not support the Miller-Modigliani hypothesis for Canada nor the United States. We find a significant, persistent premia on dividend income consistent with the clientele hypotheses in the literature. / Business, Sauder School of / Graduate

Thesis (M.B.A.)--University of Hong Kong, 1985.

No description available.

This dissertation examines firms’ reactions to two changes in tax law intended to increase dividend payout and capital investment, the Job Creation and Worker Assistance Act (JCWAA) of 2002 and the Jobs Growth Tax Relief Reconciliation Act (JGTRRA) of 2003. Chapter IV assesses whether firms assuage agency conflicts between management and shareholders created by changes in individual-level taxes on dividends, focusing on the impact of board independence on changes in management compensation and dividend policies. Data analyses suggest that greater board independence mitigates the effects of both CEO stock and option holdings on dividend increases. Additionally, firms appear to implicitly dividend-protect options through increased cash compensation, effectively reimbursing CEOs for decreases in option value. Firms that did not increase dividends in the first year following the passage of JGTRRA decreased option grants to induce greater future dividend payouts. Chapter V examines the relation between contemporary dividend increases and future earnings around JGTRRA. Specifically, I investigate whether firms increase dividends in response to shareholder demands, and I examine the market reaction to preand post-JGTRRA dividend changes. In addition, I focus on the dividend policies of growth firms, testing between firm maturation (Grullon et al. 2002) and tax-based explanations. Results suggest that dividends are less explanatory as to future earnings in the post-JGTRRA period. Post-JGTRRA dividend increases by growth firms are consistent with tax motives rather than firm maturation because growth firms paying dividends have greater investment in the post-JGTRRA period. Chapter VI examines the effects of JCWAA and JGTRRA provisions enacted to increase business capital expenditures through increased depreciation allowances. I develop a model to predict what firms’ capital expenditures would have been in the absence of these acts, comparing the actual and predicted values. I find firms significantly increased purchases of qualified assets but decreased nonqualified asset purchases, netting only a marginal overall increase in capital expenditures. Finally, I examine the impact of these acts on leasing transactions, finding that low marginal tax rate firms significantly increased use of operating leases following the passage of JCWAA, whereas firms with higher MTRs decreased lease transactions.

Thesis (Ph. D.)--University of Texas at Austin, 2002. / Vita. Includes bibliographical references.

Thesis (M. Phil.)--Hong Kong University of Science and Technology, 2003. / Includes bibliographical references (leaves 36-39). Also available in electronic version. Access restricted to campus users.

Not available / text

Thesis (Ph.D.)--The Ohio State University, 2007. / Adviser: Rene M. Stulz. Includes bibliographical references.