Driver, Ciaran, Grosman, Anna and Scaramozzino, Pasquale (2020) How investor pressure leads to higher dividend payouts. LSE Business Review [Opinion Pieces / Media / Blogs]
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Abstract
The dividends in the UK companies have been on the rise, despite uncertain economic outlook due to COVID-19, pension deficits and irrespective of whether the companies have been making profits. This column analyses the reasons for such a dramatic increase in dividend payouts. We attribute it to pressure from investors in three fundamental ways: the threat of takeovers, shareholder value-oriented corporate governance practices measured by director independence and board equity incentives, and short-term trading and institutional ownership patterns.
Item Type: | Opinion Pieces / Media / Blogs |
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SOAS Departments & Centres: | Departments and Subunits > School of Finance & Management |
Subjects: | H Social Sciences > HG Finance H Social Sciences |
Copyright Statement: | © 2020 The Author(s). Published in the LSE Business Review |
Date Deposited: | 21 Apr 2020 10:42 |
URI: | https://eprints.soas.ac.uk/id/eprint/32629 |
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