Please use this identifier to cite or link to this item: http://bura.brunel.ac.uk/handle/2438/31400
Title: The Firm-Level and Aggregate Effects of Corporate Payout Policy
Authors: Asimakopoulos, S
Malley, JR
Philippopoulos, A
Keywords: dividends;share repurchases;tax reforms;payout flexibility;C68;E62;G30;G35;H25;H30
Issue Date: 2-Jun-2025
Publisher: Elsevier
Citation: Asimakopoulos S., Malley, J.R. and Philippopoulos, A. (2025) 'The Firm-Level and Aggregate Effects of Corporate Payout Policy', Journal of International Money and Finance, 157, 103373, pp. 1 - 26. doi: 10.1016/j.jimonfin.2025.103373.
Abstract: This paper presents a novel study on the significance of corporate payout policy in shaping firms’ financial decision-making and, in turn, the macroeconomy. To this end, we add to the literature by allowing households and firms to choose share buybacks optimally. We then explore the implications of various shocks commonly facing them, such as dividend income, investment, and tax shocks. The latter include corporate income, capital gains, and dividend income taxes. We find that the model predictions cohere well with the data when applying the non-policy shocks. We also find that tax reform’s aggregate and welfare effects are overstated when share buybacks are not optimally chosen as assumed in the relevant literature.
Description: JEL Codes: C68; E62; G30; G35; H25; H30.
Data Availability: Data will be made available on request.
URI: https//bura.brunel.ac.uk/handle/2438/31400
DOI: https://doi.org/10.1016/j.jimonfin.2025.103373
ISSN: 0261-5606
Other Identifiers: ORCiD: Stylianos Asimakopoulos https://orcid.org/0000-0002-1362-5865
Article number: 103373
Appears in Collections:Dept of Economics and Finance Research Papers

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