two famous puzzles in the payout literature two forms of corporate payouts dividends and share repurchases miller and modigliani 1961 paying out through dividends or share repurchases does not matter ...
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...Two famous puzzles in the payout literature forms of corporate payouts dividends and share repurchases miller modigliani paying out through or does not matter tax disadvantages dividend was higher than capital gain can be deferred most salient farre mensa michaely schmalz puzzle black why do firms pay at all secular increase relative to over past three decades this paper costs address these simultaneously market structure frictions explain cannot completely drive reduction time explains under old vs new structures liquidity cost their investors transaction compliance sec rule b repurchase price should exceed highest bid previous trade prevent from inflating stock by demanding ask dealer modeled ho stoll glosten milgrom buy because orders are executed a less equal move towards electronic limit order books dark pools reduces submit match passively event studies controlled experiment manning execution priority for issuers prior nasdaq dealers ahead same example quotes an issuer s quote on...