The DOI matches its Crossref record; 2 of the 2 references it cites were found in a registry or an index.
Dividends, Dilution, and Taxes: A Signalling Equilibrium
Abstract
A signalling equilibrium with taxable dividends is identified. In this equilibrium, corporate insiders with more valuable private information optimally distribute larger dividends and receive higher prices for their stock whenever the demand for cash by both their firm and its current stockholders exceeds its internal supply of cash. In equilibrium, many firms distribute dividends and simultaneously issue new stock, while other firms pay no dividends. Because dividends reveal all private information not conveyed by corporate audits, current stockholders capture in equilibrium all economic rents net of dissipative signalling costs. Both the announcement effect and the relationship between dividends and cum‐dividend market values are derived explicitly.
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Citations
Cites
The Determination of Financial Structure: The Incentive‐Signalling Approach,
Ross, S. A. (1977) · The Bell Journal of Economics · doi:10.2307/3003485 · Cited by 4,168
Riley, J. G. (1979) · Econometrica · doi:10.2307/1914187 · Cited by 616
Cited by
Dividend Policy under Asymmetric Information
MILLER, M. H., & ROCK, K. (1985) · The Journal of Finance · doi:10.1111/j.1540-6261.1985.tb02362.x · Cited by 3,441
Are Dividend Changes a Sign of Firm Maturity?
Grullon, G., Michaely, R., & Swaminathan, B. (2002) · The Journal of Business · doi:10.1086/339889 · Cited by 1,050
Dynamic Investment Models and the Firm's Financial Policy
Bond, S., & Meghir, C. (1994) · The Review of Economic Studies · doi:10.2307/2297978 · Cited by 979
Signaling through corporate accountability reporting
Lys, T., Naughton, J. P., & Wang, C. (2015) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2015.03.001 · Cited by 952
COMMENT, R., & JARRELL, G. A. (1991) · The Journal of Finance · doi:10.1111/j.1540-6261.1991.tb04617.x · Cited by 616
Metadata
- Authors
- JOHN, K., & WILLIAMS, J.
- Venue
- The Journal of Finance
- Publisher
- Wiley
- Published
- 1985-09
- Volume
- 40
- Issue
- 4
- Pages
- 1053-1070
- ISSN
- 0022-1082 (ISSN-L)
- 1540-6261
- OpenAlex
- W2049440762
- Cited by
- 1,421
- References
- 2
- FWCI
- 61.92
- Type
- journal article
- Language
- en
- Open access
- closed
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- JOHN, K., & WILLIAMS, J. (1985). Dividends, Dilution, and Taxes: A Signalling Equilibrium. The Journal of Finance. https://doi.org/10.1111/j.1540-6261.1985.tb02363.x
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
