We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Factors in Dividend Payments Around Corporate Acquisitions.
- Authors
Wonder, Nick X.
- Abstract
The paper empirically examines the extent to which publicly traded U.S. acquirers in the years immediately surrounding major acquisitions follow a dividend policy based on a level per-share dividend as opposed to preserving a payout ratio, finding that much more weight is placed on the former. Additionally, the pre-merger dividend per share of the purchased firm is significantly related to the post-merger dividend of the merged firm, though the relation is weaker and in certain subsamples is insignificant. The paper also explores the role of other characteristics of the acquirer and target, including firm age, remoteness of headquarters, and number of shareholders, some of which appear to interact with the target firm's pre-merger dividend policy in their relation with post-merger dividend payments. These results provide insight into acquiring-firm decision making and may be useful for investors who emphasize dividends in their portfolio decisions.
- Subjects
DIVIDEND policy; MERGERS &; acquisitions; CORPORATE headquarters; STOCKHOLDERS; INVESTORS
- Publication
Banking & Finance Review, 2018, Vol 10, Issue 1, p35
- ISSN
1947-7945
- Publication type
Article