Determinants of a firm's decision to utilize a dividend reinvestment plan and shareholder participation rates: Australian evidence

Mathew Abraham, Alastair Marsden and Russell Poskitt

Pacific-Basin Finance Journal, 2015, vol. 31, issue C, 57-77

Abstract: This study examines the determinants of a firm's decision to utilize a dividend reinvestment plan (“DRP”) and shareholder participation rates under the Australian dividend imputation regime over the period 1995–2009. A DRP enables managers to increase the dividend payout and distribute greater franking credits to Australian tax-resident shareholders, while retaining cash in the firm for new investment opportunities.

Keywords: Dividend policy; Dividend reinvestment plan; Imputation; Franking credits; Taxes; Shareholder participation (search for similar items in EconPapers)
JEL-codes: G35 H25 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:31:y:2015:i:c:p:57-77

DOI: 10.1016/j.pacfin.2014.12.003

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