Share reacquisitions, surplus cash, and agency problems

Journal of Banking and Finance

Volumn 32, Issue 5, 2008, Pages 795-806

  Oswald, Dennis ^a   Young, Steven ^b  

^a LONDON BUSINESS SCHOOL   (United Kingdom)

^b LANCASTER UNIVERSITY   (United Kingdom)

Author keywords

Excess cash; Incentive alignment; Monitoring; Share repurchases

Indexed keywords

EID: 41849150429     PISSN: 03784266     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jbankfin.2007.05.010     Document Type: Article

References (33)

1. Bates T. Asset sales, investment opportunities, and the use of proceeds. Journal of Finance 60 1 (2005) 105-135
2. Blanchard O., Lopez-de-Silanes F., and Shleifer A. What do firms do with cash windfalls?. Journal of Financial Economics 36 (1994) 337-360
3. Bond S., Chennells L., and Devereux M. Taxes and company dividends: A microeconomic investigation exploiting cross-sectional variation in taxes. Economic Journal 106 (1996) 320-333
4. Dittmar A. Why do firms repurchase stock?. Journal of Business 73 (2000) 331-355
5. Dittmar A., and Mahrt-Smith J. Corporate governance and the value of cash holdings. Journal of Financial Economics 83 (2007) 599-634
6. Easterbrook F. Two agency-cost explanations of dividends. American Economic Review 74 4 (1984) 650-659
7. Eckbo E., and Verma S. Managerial shareownership, voting power, and cash dividend policy. Journal of Corporate Finance 1 (1994) 33-62
8. Fenn G., and Liang N. Corporate payout policy and managerial stock incentives. Journal of Financial Economics 60 (2001) 45-72
9. Fluck Z. The dynamics of management-shareholder conflict. Review of Financial Studies 12 (1999) 379-404
10. Greene W. Econometric Analysis. fifth ed. (2003), Prentice Hall, New Jersey
11. Grullon G., and Michaely R. Dividends, share repurchases and the substitution hypothesis. Journal of Finance 57 (2002) 1649-1684
12. Guay W., and Harford J. The cash flow permanence and information content of dividend increases vs. repurchases. Journal of Financial Economics 57 (2000) 385-415
13. Harford J. Corporate cash reserves and acquisitions. Journal of Finance 54 (1999) 1969-1997
14. Holdermess C. A survey of blockholders and corporate governance. Economic Policy Review 9 1 (2003) 51-64
15. Hu A., and Kumar P. Managerial entrenchment and payout policy. Journal of Financial and Quantitative Analysis 39 4 (2004) 759-790
16. Jagannathan M., Stephens C., and Weisbach M. Financial flexibility and the choice between dividends and stock repurchases. Journal of Financial Economics 57 (2000) 355-384
17. Jensen M. Agency costs of free cash flow, corporate finance, and takeovers. American Economic Review 76 (1986) 323-329
18. Jensen M., and Meckling W. Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics 3 (1976) 305-360
19. Jensen G., Solberg D., and Zorn T. Simultaneous determination of insider ownership, debt, and dividend policies. Journal of Financial and Quantitative Analysis 27 2 (1992) 247-263
20. La Porta R., Lopez-de-Silanes F., Shleifer A., and Vishny R. Agency problems and dividend policies around the world. Journal of Finance 55 (2000) 1131-1150
21. Lasfer A. Taxes and dividends: The UK evidence. Journal of Banking and Finance 20 (1996) 455-472
22. Lie E. Excess funds and agency problems: An empirical study of incremental cash disbursements. Review of Financial Studies 13 (2000) 219-248
23. Lintner J. Distributions of incomes of corporations among dividends, retained earnings and taxes. American Economic Review 46 (1956) 247-263
24. Morck R., Shleifer A., and Vishny R. Management ownership and market valuation: An empirical analysis. Journal of Financial Economics 20 (1988) 293-315
25. Myers S. Outside equity. Journal of Finance 55 (2000) 1005-1037
26. Opler T., Pinkowitz L., Stulz R., and Williamson R. The determinants and implications of corporate cash holdings. Journal of Financial Economics 52 (1999) 3-46
27. Perry T., and Shivdasani A. Do boards affect performance? Evidence from corporate restructuring. Journal of Business 78 4 (2005) 1403-1431
28. Richardson S. Over-investment of free cash flow. Review of Accounting Studies 11 (2006) 159-189
29. Rozeff M. Growth, beta and agency costs as determinants of dividend payout ratios. Journal of Financial Research 3 4 (1982) 249-259
30. Short H., Zhang H., and Keasey K. The link between dividend policy and institutional ownership. Journal of Corporate Finance 8 (2002) 105-122
31. Stephens C., and Weisbach M. Actual share reacquisitions in open market repurchase programs. Journal of Finance 53 (1998) 313-333
32. Zeckhauser R., and Pound J. Are large shareholders effective monitors? An investigation of share ownership and corporate performance. In: Hubbard R. (Ed). Asymmetric Information, Corporate Finance and Investment (1990), Chicago University Press, Chicago
33. Zwiebel J. Dynamic capital structure under managerial entrenchment. American Economic Review 86 (1996) 1197-1215