Dividends, Share Repurchases, and the Substitution Hypothesis

By Gustavo Grullon, Roni Michaely. 2000

1,471 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/e3ac9f480f912810aa250db97d32439272ed80b7

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Citations in the corpus

Why Do Firms Pay Dividends? International Evidence on the Determinants of Dividend Policy (2008, background): “11 See Grullon and Michaely (2002) and Skinner (2008) for evidence”
Dividend changes and catering incentives (2006, background): “We expect that firms that wish to disburse funds when the dividend premium is low do so via repurchases, both because dividends are less appealing at such times and because repurchases serve as substitutes for dividends (Grullon and Michaely (2002)).”
Instability of Return Prediction Models (2006, background): “On the other hand, one might construct an economic argument in support of a break in the dividend yield regression arising from the gradual substitution of repurchases for dividends as a form of payout (see, e.g., Grullon and Michaely, 2002 ).”
The Impacts of Free Cash Flows and Agency Costs on Firm Performance (2010, background): “More studies supporting the effect of firm size could be seen in Gul and Tsui [19], Grullon and Michaely [36], and Singh and Davidson [26].”
The timing of financing decisions: An examination of the correlation in financing waves (2008, methodology): “Although Grullon and Michaely (2002), Dittmar (2000), and others note the importance of regulatory changes in the early 1980s in explaining the growth of 2 This undervaluation could be relative to a firm’s ‘‘true’’ value or more broadly relative to the firms most likely value and thus substantially…”
Asymmetric Information and Dividend Policy (2008, neutral): “This finding confirms previous evidence in Fama and French (2001) and Grullon and Michaely (2002) that repurchases are primarily made by dividend-paying firms, and that as a result, repurchasing firms are more likely to be dividend payers.”
Dividend Dynamics and the Term Structure of Dividend Strips (2015, neutral): “While repurchase programs were mostly non-existent in the early part of the sample (Fama and French (2001), Grullon and Michaely (2002)), equity issuances have always been a significant component of net equity payouts.”
Yes, dividends are disappearing: Worldwide evidence (2012, neutral): “See also Grullon and Michaely (2002) for evidence indicating that a shift away from dividends to repurchases represents a substitution effect.”
Peer influence on payout policies (2018, background): “In fact, the decrease in dividends is almost entirely substituted by an increase in share repurchases (see Grullon et al. (2011)), and firms often substitute one form of payout with the other depending on investors’ preferences and market conditions (see Li and Lie (2006)). In addition, Massa, Rehma”