How investor pressure leads to higher dividend payouts

Main author: Driver, Ciaran
Other authors: Grosman, Anna
Scaramozzino, Pasquale
Format: Opinion Pieces / Media / Blogs           
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id eprints-32629
recordtype eprints
institution SOAS, University of London
collection SOAS Research Online
language English
language_search English
topic HG Finance
H Social Sciences
description 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.
format Opinion Pieces / Media / Blogs
author Driver, Ciaran
author_facet Driver, Ciaran
Grosman, Anna
Scaramozzino, Pasquale
authorStr Driver, Ciaran
author_letter Driver, Ciaran
author2 Grosman, Anna
Scaramozzino, Pasquale
author2Str Grosman, Anna
Scaramozzino, Pasquale
title How investor pressure leads to higher dividend payouts
publishDate 2020
url https://eprints.soas.ac.uk/32629/