If you need an accessible version of this item please contact JSTOR User Support

Defensive Changes in Corporate Payout Policy: Share Repurchases and Special Dividends

David J. Denis
The Journal of Finance
Vol. 45, No. 5 (Dec., 1990), pp. 1433-1456
Published by: Wiley for the American Finance Association
DOI: 10.2307/2328744
Stable URL: http://www.jstor.org/stable/2328744
Page Count: 24
  • Download PDF
  • Cite this Item

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If you need an accessible version of this item please contact JSTOR User Support
Defensive Changes in Corporate Payout Policy: Share Repurchases and Special Dividends
Preview not available

Abstract

This paper examines defensive payouts announced in response to hostile corporate control activity. The evidence indicates that the announcement of defensive share repurchases is associated with an average negative impact on the share price of the target firm. In contrast, special dividend payments generally increase the wealth of target firm shareholders. Regardless of payout type, those firms remaining independent after the outcome of the corporate control contest experience an abnormal share price increase over the duration of the contest. Among these firms there are substantial post-contest changes in capital, asset, and ownership structure and abnormally high rates of top management turnover.

Page Thumbnails

  • Thumbnail: Page 
1433
    1433
  • Thumbnail: Page 
1434
    1434
  • Thumbnail: Page 
1435
    1435
  • Thumbnail: Page 
1436
    1436
  • Thumbnail: Page 
1437
    1437
  • Thumbnail: Page 
1438
    1438
  • Thumbnail: Page 
1439
    1439
  • Thumbnail: Page 
1440
    1440
  • Thumbnail: Page 
1441
    1441
  • Thumbnail: Page 
1442
    1442
  • Thumbnail: Page 
1443
    1443
  • Thumbnail: Page 
1444
    1444
  • Thumbnail: Page 
1445
    1445
  • Thumbnail: Page 
1446
    1446
  • Thumbnail: Page 
1447
    1447
  • Thumbnail: Page 
1448
    1448
  • Thumbnail: Page 
1449
    1449
  • Thumbnail: Page 
1450
    1450
  • Thumbnail: Page 
1451
    1451
  • Thumbnail: Page 
1452
    1452
  • Thumbnail: Page 
1453
    1453
  • Thumbnail: Page 
1454
    1454
  • Thumbnail: Page 
1455
    1455
  • Thumbnail: Page 
1456
    1456