Skip to main content
Kent Academic Repository

Takeover risk and dividend strategy: A study of UK firms

Dickerson, Andrew, Gibson, Heather D., Tsakalotos, Euclid (1998) Takeover risk and dividend strategy: A study of UK firms. Journal of Industrial Economics, 46 (3). pp. 281-300. ISSN 0022-1821. (doi:10.1111/1467-6451.00072) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided) (KAR id:17695)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided.
Official URL:
http://dx.doi.org/10.1111/1467-6451.00072

Abstract

We investigate the relationship between a company's dividend strategy and its risk of takeover, Our results from a large panel of UK quoted companies suggest that higher dividend payments are associated with a significantly lower conditional probability (hazard) of takeover. Moreover, firms which wish to avoid takeover would be better to distribute the marginal pound 1 of earnings in dividends rather than investing it in the company. We consider two explanations for these findings. We suggest that the presence of an active market for corporate control could encourage firms to raise dividends to maintain shareholder loyalty.

Item Type: Article
DOI/Identification number: 10.1111/1467-6451.00072
Subjects: H Social Sciences
Divisions: Divisions > Division of Human and Social Sciences > School of Economics
Depositing User: R.F. Xu
Date Deposited: 01 May 2009 16:29 UTC
Last Modified: 16 Nov 2021 09:55 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/17695 (The current URI for this page, for reference purposes)

University of Kent Author Information

Dickerson, Andrew.

Creator's ORCID:
CReDIT Contributor Roles:
  • Depositors only (login required):

Total unique views for this document in KAR since July 2020. For more details click on the image.