RT Journal Article
SR 00
ID 10.1016/j.jmateco.2014.01.005
A1 Akyildirim, Erdinc
A1 Guney, Ethem
A1 Rochet, Jean-Charles
A1 Soner, Mete
T1 Optimal dividend policy with random interest rates
JF Journal of Mathematical Economics
YR 2014
FD 2014-03
VO vol.51
SP 93
OP 101
K1 Dividend policy
K1 Business cycles
K1 Financial frictions
AB Several recent papers have studied the impact of macroeconomic shocks on the financial policies of firms. However, they only consider the case where these macroeconomic shocks affect the profitability of firms but not the financial markets conditions. We study the polar case where the profitability of firms is stationary, but interest rates and issuance costs are governed by an exogenous Markov chain. We characterize the optimal dividend policy and show that these two macroeconomic factors have opposing effects: all things being equal, firms distribute more dividends when interest rates are high and less when issuing costs are high.
PB Elsevier
SN 0304-4068
LK https://publications.ut-capitole.fr/id/eprint/22269/
UL http://tse-fr.eu/pub/30621