• Corpus ID: 12381470

Version : April 9 , 2003 Payout policy in the 21 st century

  title={Version : April 9 , 2003 Payout policy in the 21 st century},
  author={Alon Brav and John R. Graham and Campbell R. Harvey and Roni Michaely},
We survey 384 CFOs and Treasurers, and conduct in -depth interviews with an additional two dozen, to determine the key factors that drive dividend and share repurchase policies. We find that managers are very reluctant to cut dividends, that dividends are smoothed through time, and that dividend increases are tied to long-run sustainable earnings but much less so than in the past. Rather than increasing dividends, many firms now use repurchases as an alternative. Paying out with repurchases is… 

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