References (30)


Citations (86)



The Evolving Relation Between Earnings, Dividends, and Stock Repurchases

Douglas J. Skinner

The University of Chicago - Booth School of Business

Journal of Financial Economics, Forthcoming

This paper examines how the relation between earnings and payout policy has evolved over the last three decades. Three principal groups of payers have emerged: firms that pay dividends and make regular repurchases, firms that make regular repurchases, and firms that make occasional repurchases. Firms that only pay dividends are largely extinct. Repurchases are increasingly used in place of dividends, even for firms that continue to pay dividends. While other factors help explain the timing of repurchases, the overall level of repurchases is fundamentally determined by earnings. The results suggest that repurchases are now the dominant form of payout.

Number of Pages in PDF File: 64

Keywords: dividends, stock repurchases, payout policy, earnings

JEL Classification: G35, M41

Accepted Paper Series

Download This Paper

Date posted: November 3, 2007  

Suggested Citation

Skinner, Douglas J., The Evolving Relation Between Earnings, Dividends, and Stock Repurchases. Journal of Financial Economics, Forthcoming. Available at SSRN: http://ssrn.com/abstract=1027059

Contact Information

Douglas J. Skinner (Contact Author)
The University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-702-7137 (Phone)

Chicago Booth School of Business Logo

Feedback to SSRN

Paper statistics
Abstract Views: 2,131
Downloads: 652
Download Rank: 2,774
References:  30
Citations:  86
People who downloaded this paper also downloaded:
1. Why are Stock Buyback Announcements Good News?
By Allan Eberhart and Akhtar Siddique

© 2015 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo8 in 1.125 seconds