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題名 Optimal payout ratio under uncertainty and the flexibility hypothesis: Theory and empirical evidence
作者 陳鴻毅
Lee, Cheng-Few ;Gupta, Manak C. ;Chen, Hong-Yi ;Lee, Alice C.
貢獻者 財管系
關鍵詞 Dividends; Flexibility hypothesis; Payout policy; Fixed-effects model
日期 2011.06
上傳時間 22-Oct-2014 12:25:10 (UTC+8)
摘要 Following the dividend flexibility hypothesis used by DeAngelo and DeAngelo (2006), Blau and Fuller (2008), and others, we theoretically extend the proposition of DeAngelo and DeAngelo (2006) optimal payout policy in terms of the flexibility dividend hypothesis. In addition, we also introduce growth rate, systematic risk, and total risk variables into the theoretical model.To test the theoretical results derived in this paper, we use the data collected in the US from 1969 to 2009 to investigate the impact of the growth rate, systematic risk, and total risk on the optimal payout ratio in terms of the fixed-effect model. We find that based on flexibility considerations, a company will reduce its payout when the growth rate increases. In addition, we find that a nonlinear relationship exists between the payout ratio and the risk. In other words, the relationship between the payout ratio and the risk is negative (or positive) when the growth rate is higher (or lower) than the rate of return on total assets. Our theoretical model and empirical results can therefore be used to identify whether flexibility or the free cash flow hypothesis should be used to determine the dividend policy.
關聯 Journal of Corporate Finance, 17, 483-501
資料類型 article
DOI http://dx.doi.org/10.1016/j.jcorpfin.2011.02.004
dc.contributor 財管系en_US
dc.creator (作者) 陳鴻毅zh_TW
dc.creator (作者) Lee, Cheng-Few ;Gupta, Manak C. ;Chen, Hong-Yi ;Lee, Alice C.en_US
dc.date (日期) 2011.06en_US
dc.date.accessioned 22-Oct-2014 12:25:10 (UTC+8)-
dc.date.available 22-Oct-2014 12:25:10 (UTC+8)-
dc.date.issued (上傳時間) 22-Oct-2014 12:25:10 (UTC+8)-
dc.identifier.uri (URI) http://nccur.lib.nccu.edu.tw/handle/140.119/70687-
dc.description.abstract (摘要) Following the dividend flexibility hypothesis used by DeAngelo and DeAngelo (2006), Blau and Fuller (2008), and others, we theoretically extend the proposition of DeAngelo and DeAngelo (2006) optimal payout policy in terms of the flexibility dividend hypothesis. In addition, we also introduce growth rate, systematic risk, and total risk variables into the theoretical model.To test the theoretical results derived in this paper, we use the data collected in the US from 1969 to 2009 to investigate the impact of the growth rate, systematic risk, and total risk on the optimal payout ratio in terms of the fixed-effect model. We find that based on flexibility considerations, a company will reduce its payout when the growth rate increases. In addition, we find that a nonlinear relationship exists between the payout ratio and the risk. In other words, the relationship between the payout ratio and the risk is negative (or positive) when the growth rate is higher (or lower) than the rate of return on total assets. Our theoretical model and empirical results can therefore be used to identify whether flexibility or the free cash flow hypothesis should be used to determine the dividend policy.en_US
dc.format.extent 617649 bytes-
dc.format.mimetype application/pdf-
dc.language.iso en_US-
dc.relation (關聯) Journal of Corporate Finance, 17, 483-501en_US
dc.subject (關鍵詞) Dividends; Flexibility hypothesis; Payout policy; Fixed-effects modelen_US
dc.title (題名) Optimal payout ratio under uncertainty and the flexibility hypothesis: Theory and empirical evidenceen_US
dc.type (資料類型) articleen
dc.identifier.doi (DOI) 10.1016/j.jcorpfin.2011.02.004en_US
dc.doi.uri (DOI) http://dx.doi.org/10.1016/j.jcorpfin.2011.02.004 en_US