企业价值与股利政策英文文献Word文件下载.docx

企业价值与股利政策英文文献Word文件下载.docx

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sstrategicfinancingdecision.Itessentiallyinvolvesafirm'

sdirectorsdecidinghowmuchofthefirm'

searnings,afterinterestandtaxes（EAIT）,shouldbedistributedtothefirm'

sordinaryshareholdersinreturnfortheirinvestmentinthefirm,andhowmuchshouldberetainedtofinancefuturegrowthanddevelopment.（SterkandVandenberg2004441-55）Theobjectiveofthefirm'

sdividenddecision,likeallfinancialdecisions,shouldbethemaximisationofshareholderwealth.Ifanoptimaldividendpolicydoesexistthenclearlymanagersshouldconcernthemselveswithitsdetermination;

ifitdoesnot,thenanydividendpolicywilldo,asonepolicywillbeequaltoanother.Itshouldbenotedthatthedividenddecisionanddividendpolicyrelateonlytoordinarysharecapital.（AsquithandMullins200377-96）Thepaymentofpreferencesharedividendsisnotconsideredpartofafirm'

sdividendpolicy,asthelevelof,ormethodofcalculating,thepreferencedividendisfixedinadvancebythetermsandconditionsoftheoriginalpreferenceshareoffer.Onceadividendpolicyhasbeenformulated,settingouttheamountandtiming,etc.ofdividendpayments,itshouldbefollowedwithstabilityandconsistencyasitsguidingprinciples.Asweshalldiscusslater,changestoafirm'

sdividendpolicycanbeinterpretedinvariouswaysbythefinancialmarkets,sometimeswithdramaticconsequencesforthefirm'

sshareprice.Youwillnotethatthedividenddecisionismadeatthelevelofthefirm'

smostseniormanagers-atboardofdirectorlevel.Itisthedirectorswhowilldecidetheamountandtimingofdividendpayments.UnderUKcompanylawthedirectorscannotbecompelledtorecommendadividendandshareholderscannotvotethemselvesahigherdividendthanthatrecommendedbythedirectors.（BajajandVijh2004193）PaymentofdividendsIntheUK,incommonwithmanyothercountries,dividendsareusuallypaidtoshareholderstwiceayear.Aninterimpaymentismadehalf-waythroughthefinancialyear,withafinalpaymentbeingmadeaftertheendofthefinancialyear.Dividendsarepaidtotheshareholderslistedonafirm'

sShareRegisteronaspecifieddate,knownastheRecordDate.（SterkandVandenberg2004441-55）Inthestockmarket,sharesoflistedcompaniesaretradedonwhatisknownaseitheracum-dividendorex-dividendbasis.Alistedcompany'

ssharesaretradedcum-dividendforaperiodafterthecompanyannouncesitsresults,interimandfinal.Whenthesharesaretradingcum-dividend,buyersoftheshareswillbeentitledtoreceivethedividendpayment.Whenthesharesaretradingex-dividend,buyerswillnotbeentitledtoreceiveadividendpayment.Thisexplainswhy（assumingtheabsenceofanyotherrelevantfactors）thereisusuallyadropinashare'

sprice,roughlyequivalenttothevalueofthedividendpershare,whenthesharegoesex-dividend.（Impson2005422-27）Forinstance,distributingcapitalorcertaintypesofreserves（e.g.sharepremiumaccount）asdividendsisprohibitedbycompanylaw.Thedeterminationofdistributableprofitsissetoutinadetailedcodeofstatutoryregulations.Forpublicandprivatecompanies,theCompaniesAct2003definesdistributableprofitsas:

'

accumulatedrealisedprofits,sofarasnotpreviouslyutilisedbydistributionorcapitalisation,lessaccumulatedrealisedlosses,sofarasnotpreviouslywrittenoffinareductionorreorganisationofcapitaldulymade'

.Theselegalrestrictionsonthepaymentsofdividendsarenecessarytomaintainthecapitalofacompanyandtoprotecttherightsandclaimsofcreditors.Therelevance（orirrelevance）ofdividendpolicytothevalueofthefirmhasbeenoneofthemostwidelyresearchedtopicsinfinanceandaccounting.Argumentshavebeenadvancedonallsidesoftheissue.Giventheinabilitytostructureasingleconceptualrelationshipbetweendividendpolicyandthevalueofthefirm,empiricalstudiesoftherelationshipbetweendividendsandfirmvaluehavetakenonincreasedimportance.Previousstudieshaveusedeithershort-runmeasuresofstockpriceorrisk-adjustedreturnstomeasurefirmvalue.（JoseandStevens2004652）Dividendannouncementstudieshaveexaminedtheimmediatereactionofthefirm’sstockpricetoadividendannouncementtodetermineifthestockpricefallsbymoreorlessthantheamountofthedividend.Findingsfromannouncementstudiessuggestthatinvestorsdiscountdividends.Otherstudieshavetestedfortherelationshipbetweenrisk-adjustedreturnsanddividendyield.Usingshort-runholdingperiods,thesestudieshavefoundthatinvestorsrequirehigherrisk-adjustedreturnsfromhigherdividendyieldstocks.Whiletherearecontroversiesovertheshort-runmeasuresandassumptionsofassetpricingmodelsrelatingreturnstofirmvalue,theempiricalfindingshaveconsistentlysuggestedthathigherdividendcommitmentslowerthevalueofthefirm.（Bernstein20054-15）MultipleMeasuresofDividendPolicyDividend"

policy"

impliesaconsciousmanagementofdividenddistributionsovertime.Surveysindicatethatmanagerstendtofocusonthepayoutratiointhelongrun,butsmoothdividendsintheshortrun.（Bakeretal20041-8）Inthelongerrun,thelevelofthefirm'

saveragepayoutratiocapturesthefirm'

scommitmenttothelevelofdividenddistributionoutofearnings.However,overtimethefirmneednotadheretothesameshort-runpayoutratiotoaccomplishthelonger-runobjectiveunlessearningsarestable.Ifdividendspershareareconsciouslysmoothedrelativetoearnings,thefirm'

spayoutratiowillbevolatile.Thegreaterthevolatilityinthepayoutratio,thegreaterthesmoothingofdividends.Thevolatilityofdividendsaroundtheirtrendreflectstheinherentdividendstabilityaspectsofthepolicy.（Woolridge2002237-47）Measuresoftheaveragepayoutratio（APOR）,dividendstabilityaroundthedividendtimetrend（R2LDPS）,andpayoutratiovolatility（SDPOR）areusedtorepresentthefirm'

spolicywithrespecttodividendlevels,stability,andsmoothing.ThedividendpaymentInpracticaltermsafirm'

sdividendpaymentisimportanttoitsshareholders.Itispartofthereturnwhichshareholdersreceivefortheirinvestmentinthefirm.Thedividendpaymentisalsoafavouredmethodbywhichshareholdersandinvestorsestimateafirm'

ssharevalue,wherethevalueofashareisequaltothepresentvalueoftheexpectedfuturedividendpayments-thedividendvaluationmodelNoticethetendencyforthefinaldividendtobesignificantlygreaterthantheinterim-thisisthecommon,financiallyprudent,approachadoptedbymostcompanyboards.（Michaely2005573）Clearlydirectorswillwishtobecertainofhowacompanyhasperformedfortheyearoverall,beforecommittingvaluablecashresourcestoadividendpayment.Shareholders,dependingupontheindividualcompany'

sarticlesofassociation,mayhavetherighttoreceivedividendsintheformoffullypaidordinarysharesinsteadofcash,iftheysoelect.Undersuchaplanshareholderscan,iftheywish,usetheentirecashdividendtobuyadditionalsharesofthecompanyinthemarket,usuallyatacompetitivedealingrate.（Christie2004459-80）DividendcoverThedividendcoverratioindicatesthevulnerability,orthemarginofsafety,ofdividendpaymentstoadropinearnings.NotwithstandingtheabolitionofACT,taxcreditswillcontinuetobeavailabletoindividualshareholdersresidentfortaxpurposesintheUK,althoughtheamountofthetaxcreditwillbereducedtoone-ninthoftheamountofthenet,orcashdividend-equivalentto10percentofthegrossdividend.Lowerandbasicratetaxpayers,asbefore6April2006,willhavenofartherliabilitytotaxontheirdividends.Higherratetaxpayerswill,asbefore,beabletooffsetthetaxcreditagainsttheirliabilitytotaxonthegrossdividend.UKresidentindividualshareholderswhoarenotliabletoincometaxinrespectofthedividendwillnotgenerallybeentitledtoreclaimanypartofthetaxcredit.TaxcreditsarenolongeravailabletoUKpensionfunds.（Bakeretal200378-84）UnderlegislationintroducedintheFinance（No.2）Act2005,UKpensionfundsarenotentitledtoreclaimthetaxcreditsondividendspaidtothembyacompany.Similarly,after6April2006taxcreditsinrespectofdividendspaid,whichconstitutestheincomeofacharityorventurecapitaltrust,willnotberepaid.Thereissomespeculationthat,inthefuture,companiesmayincreasetheirdividenddistributionstocompensatetheseinvestinginstitutionsforthelossoftheirtaxcredits.（Miller20031031）Overtimemanytheoriesondividendpolicy,oftencontroversialones,haveemerged.Thecentralareaofcontroversyhas,andcontinuestobe,concernedwithwhetherornotthereisarealconnectionbetweendividendpolicyandthemarketvalueofthefirm.Inthissectionwewillreviewthefollowingmaintheoriesofdividendpolicy:

1theresidualtheoryofdividendpolicy;

2dividendirrelevancytheory;

3thebird-in-the-handtheory;

4dividendsignallingtheory;

5thedividendclienteleeffect;

6agencycosttheory.

TheresidualtheoryofdividendpolicyTheessenceoftheresidualtheoryofdividendpolicyisthatthefirmwillonlypaydividendsfromresidualearnings,thatis,fromearningsleftoverafterallsuitable（positiveNPV）investmentopportunitieshavebeenfinanced.Recallfromthepreviouschapterthat,accordingtoMyers'

PeckingOrderTheory,managerswillprefertoutiliseretainedearningsastheprimarysourceofinvestmentfinancing,beforeresortingtoissuingdebtorequity.Retainedearningsarethemostimportantsourceoffinancingformostcompanies.（Ang2003）Theyar