Shareholder Preferences and Dividend Policy

Michael J. Brennan and Anjan Thakor ()
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Michael J. Brennan: University of California, Los Angeles

Finance from University Library of Munich, Germany

Abstract: This paper develops a theory of choice among alternative procedures for distributing cash from corporations to shareholders. Despite the preferential tax treatment of capital gains for individual investors, it is shown that a majority of a firm's shareholders may support a dividend payment for small distributions. For larger distributions an open market stock repurchase is likely to be preferred by a majority of shareholders, and for the largest distributions tender offer repurchases dominate.

JEL-codes: G (search for similar items in EconPapers)
Pages: 27 pages
Date: 2004-11-10
New Economics Papers: this item is included in nep-cfn
Note: Type of Document - pdf; pages: 27
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https://econwpa.ub.uni-muenchen.de/econ-wp/fin/papers/0411/0411017.pdf (application/pdf)

Related works:
Journal Article: Shareholder Preferences and Dividend Policy (1990)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpfi:0411017

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