This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window
Open in New Tab
Open in same window
Journal of Economic Perspectives: Vol. 3 No. 3 (Summer 1989)
JEP Volume. 3, Issue 3 | 
Previous ArticleNext Article
Sign up for Email Alerts Follow us on Twitter
Full-text Article (Complimentary)
View Comments on This Article (0) | Login to post a comment
Previous ArticleNext Article
Expand
Quick Tools:
Print Article Summary Email Link to this Article Export CitationSign up for Email Alerts Follow us on Twitter
Explore:
Cash Distributions to Shareholders
Article Citation
Bagwell, Laurie Simon, and
John B. Shoven. 1989. "Cash Distributions to Shareholders."
Journal of Economic Perspectives,
3(3): 129-140.
DOI: 10.1257/jep.3.3.129
DOI: 10.1257/jep.3.3.129
Abstract
Economists have long been puzzled by why firms pay dividends when alternative methods of rewarding shareholders and financiers exist which involve less taxes. This paper will highlight the fact that firms can distribute cash to equity holders in ways more lightly taxed than dividends. The two methods we examine are share repurchase programs and cash-financed mergers and acquisitions. So why should cash distributions from firms to shareholders ever take the form of dividends? This paper first provides evidence on the explosive growth in dividend cash payments, and then discusses how this evidence should affect theories about corporate finance.
Article Full-Text Access
Full-text Article (Complimentary)
Authors
Bagwell, Laurie Simon (Northwestern U)
Shoven, John B. (Stanford U)
Shoven, John B. (Stanford U)
JEL Classifications
521: Business Finance
Comments
View Comments on This Article (0) | Login to post a comment
