Review of: the Evolving Relation Between Earnings, Dividends, and Stock Repurchases

2.) Name of the authorship: The evolving relation amongst meshing, dividends, and stock(a) repurchases Author(s): Douglas J. mule driver University of Chicago, alumna School of Business Year of publication: 2008 Name of diary: Journal of Financial Economics Page count for paper: 28 pages (pages 582-609 in JFEC) 3.) The main research straits is: atomic number 18 stock repurchases being implementd as a substitute(a) for dividends? The fountain hypothesizes that repurchases are exceedingly more common than dividends in wrong of yieldouts. 4.) This question is important because it sheds light on the proximo payout policies of firms. Since it is hard-fought for firms to pay dividends when they report losses, managers are favoring stock repurchases erstwhile they became a viable form of payout in the 1980s. We should care near this question as Finance and Management students because of its impact on payout insurance decisions. If we are ever in t he position of influencing, or hitherto making such decisions, it is crucial to understand the benefits of change dividend payouts with repurchases. mule skinner claims that firms that continue to pay dividends do so because of history. If thats the case, so as we begin to fill the administrator shoes of the world, perhaps our firms dont need to pay dividends? 5.) Skinners data is derived from Compustat Industrial Annual, as do available by WRDS. The data used allows Skinner to use Lintner model regressions to get wind the relation between these firms keep down payouts (dividends and repurchases) and earnings and find that, as predicted, repurchases adjust quickly to earnings changes while the relation between earnings and dividends becomes weak. (Skinner, 2008) He also uses this compiled data to pick out the 3 unalike groups conveyed in his hypothesis. 6.) The data used by Skinner covers historic period 1980 2005. 7.) When I read these articles, I per petually believe researchers chouse exactly! what theyre going to say...If you indispensability to get a full essay, order it on our website: OrderCustomPaper.com

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