Anzeige
Erschienen in:
2020 | OriginalPaper | Buchkapitel
Scrip Dividends and Share Buyback Strategies Based on Volatility
verfasst von : Angel Huerga, Carlos Rodríguez-Monroy
Erschienen in: Advances in Engineering Networks
Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.
Wählen Sie Textabschnitte aus um mit Künstlicher Intelligenz passenden Patente zu finden. powered by
Markieren Sie Textabschnitte, um KI-gestützt weitere passende Inhalte zu finden. powered by
Abstract
The number of listed companies offering alternatives to cash dividends is increasing in Europe. Companies can reduce the cash outflows by giving shareholders the option to receive either shares or cash. Some investors favor scrip dividends due to the implicit-free call option attached to the scrip distributions, and recent studies confirm that the market does not react negatively, helping to reduce the agency problem. Additionally, companies can avoid dilution by repurchasing the shares offered in the scrip. Repurchase strategies using volatility and derivatives can guarantee a lower repurchase price, improving the capital ratios of the company and increasing BVPS.