search query: @author Bernardo, A. E. / total: 5
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| Author: | Allen, F. Bernardo, A. E. Welch, I. |
| Title: | A theory of dividends based on tax clienteles |
| Journal: | Journal of Finance
2000 : DEC, VOL. 55:6, p. 2499-2536 |
| Index terms: | Economic theory Taxation Tax avoidance Dividends Shares |
| Language: | eng |
| Abstract: | This paper explains why some firms prefer to pay dividends rather than repurchase shares. When institutional investors are relatively less taxed than individual investors, dividends induce "ownership clientele" effects. Firms paying dividends attract relatively more institutions, which have a relative advantage in detecting high firm quality and in ensuring firms are well managed. |
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