The Journal of Finance

Dividend Policy and Financial Distress: An Empirical Investigation of Troubled NYSE Firms

Published: 12/1990,  Volume: 45,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1990.tb03721.x  |  Cited by: 316

HARRY DeANGELO, LINDA DeANGELO

This paper studies the dividend policy adjustments of 80 NYSE firms to protracted financial distress as evidenced by multiple losses during 1980–1985. Almost all sample firms reduced dividends, and more than half apparently faced binding debt covenants in years they did so. Absent binding debt covenants, dividends are cut more often than omitted, suggesting that managerial reluctance is to the omission and not simply the reduction of dividends. Moreover, managers of firms with long dividend histories appear particularly reluctant to omit dividends. Finally, some dividend reductions seem strategically motivated, e.g., designed to enhance the firm's bargaining position with organized labor.

Payout Policy and Tax Deferral

Published: 3/1991,  Volume: 46,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1991.tb03754.x  |  Cited by: 14

HARRY DeANGELO

Equilibrium in the standard finance model implies that value‐maximizing firms make taxable equity payouts, even when deferral effectively allows complete tax escape. Since tax deferral and consumption deferral are inherently jointly supplied goods, an excess aggregate supply of future consumption would result if firms followed conventional wisdom and adopted low or zero payout policies to capture tax deferral benefits. The market provides incentives for firms to supply both taxable payouts and capital gains by overriding any tax deferral advantage, just as it provides incentives for equity financing by overriding the corporate tax advantage of debt in “Debt and Taxes.”

Dividends and Losses

Published: 12/1992,  Volume: 47,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1992.tb04685.x  |  Cited by: 274

HARRY DeANGELO, LINDA DeANGELO, DOUGLAS J. SKINNER

An annual loss is essentially a necessary condition for dividend reductions in firms with established earnings and dividend records: 50.9% of 167 NYSE firms with losses during 1980–1985 reduced dividends, versus 1.0% of 440 firms without losses. As hypothesized by Miller and Modigliani, dividend reductions depend on whether earnings include unusual items that are likely to temporarily depress income. Dividend reductions are more likely given greater current losses, less negative unusual items, and more persistent earnings difficulties. Dividend policy has information content in that knowledge that a firm has reduced dividends improves the ability of current earnings to predict future earnings.

How Stable Are Corporate Capital Structures?

Published: 1/19/2015,  Volume: 70,  Issue: 1  |  DOI: 10.1111/jofi.12163  |  Cited by: 313

HARRY DeANGELO, RICHARD ROLL

Leverage cross‐sections more than a few years apart differ markedly, with similarities evaporating as the time between them lengthens. Many firms have high and low leverage at different times, but few keep debt‐to‐assets ratios consistently above 0.500. Capital structure stability is the exception, not the rule, occurs primarily at low leverage, and is virtually always temporary, with many firms abandoning low leverage during the post‐war boom. Industry‐median leverage varies widely over time. Target‐leverage models that place little or no weight on maintaining a particular ratio do a good job replicating the substantial instability of the actual leverage cross‐section.

Leverage and Dividend Irrelevancy Under Corporate and Personal Taxation

Published: 5/1980,  Volume: 35,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1980.tb02176.x  |  Cited by: 77

HARRY DeANGELO, RONALD W. MASULIS

PORTFOLIO SELECTION*

Published: 3/1952,  Volume: 7,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1952.tb01525.x  |  Cited by: 5133

Harry Markowitz

GOD AS PORTFOLIO MANAGER

Published: 12/1973,  Volume: 28,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1973.tb01463.x  |  Cited by: 0

Harry Weber

U.S. MONETARY AND CREDIT POLICIES BETWEEN THE END OF WORLD WAR II AND THE OUTBREAK OF THE KOREAN WAR*

Published: 9/1955,  Volume: 10,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1955.tb01288.x  |  Cited by: 0

Harry Brandt

THE STATE OF THE FINANCE FIELD: COMMENT

Published: 12/1967,  Volume: 22,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1967.tb00290.x  |  Cited by: 4

Harry Sauvain

STOCK‐MARKET “PATTERNS” AND FINANCIAL ANALYSIS: METHODOLOGICAL SUGGESTIONS

Published: 3/1959,  Volume: 14,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1959.tb00481.x  |  Cited by: 52

Harry V. Roberts

Foundations of Portfolio Theory

Published: 6/1991,  Volume: 46,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1991.tb02669.x  |  Cited by: 744

HARRY M. MARKOWITZ

IS THERE AN OPTIMAL MONEY SUPPLY?

Published: 5/1970,  Volume: 25,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1970.tb00666.x  |  Cited by: 4

Harry G. Johnson

COMPETITION FROM TAX‐EXEMPT BUSINESS*

Published: 6/1951,  Volume: 6,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1951.tb04455.x  |  Cited by: 0

Harry G. Guthmann

EFFECT ON THE ECONOMY OF CHANNELING SAVINGS THROUGH PENSION FUNDS

Published: 5/1952,  Volume: 7,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1952.tb01535.x  |  Cited by: 0

Harry G. Guthmann

INVESTMENT FOR THE LONG RUN: NEW EVIDENCE FOR AN OLD RULE

Published: 12/1976,  Volume: 31,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1976.tb03213.x  |  Cited by: 158

Harry M. Markowitz

THE AMERICAN FINANCE ASSOCIATION

Published: 8/1946,  Volume: 1,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1946.tb01544.x  |  Cited by: 1

Harry G. Guthmann

Nonnegative or Not Nonnegative: A Question about CAPMs

Published: 5/1983,  Volume: 38,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1983.tb02234.x  |  Cited by: 9

HARRY M. MARKOWITZ

WAGE DIFFERENTIALS IN THEORY AND PRACTICE THE EFFECT OF STATUS ON WAGE DIFFERENTIALS*

Published: 3/1962,  Volume: 17,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1962.tb04258.x  |  Cited by: 0

Harry Lawrence Hall

CHANGING INTEREST RATES AND THE INVESTMENT PORTFOLIO*

Published: 5/1959,  Volume: 14,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1959.tb01583.x  |  Cited by: 0

Harry C. Sauvain

THE MEASUREMENT OF LOCAL FISCAL CAPACITY*

Published: 3/1961,  Volume: 16,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1961.tb02803.x  |  Cited by: 0

Harry H. Landreth

A METHOD FOR CONSUMER VALUATION OF LIFE INSURANCE POLICIES BY TYPE: REPLY

Published: 12/1963,  Volume: 18,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1963.tb01641.x  |  Cited by: 0

Harry J. Solberg

THE VALUATION OF SECURITY HOLDINGS OF LIFE INSURANCE COMPANIES (Discussion)

Published: 6/1951,  Volume: 6,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1951.tb04451.x  |  Cited by: 0

Harry L. Severson

A METHOD FOR CONSUMER VALUATION OF LIFE INSURANCE POLICIES BY TYPE

Published: 12/1962,  Volume: 17,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1962.tb04337.x  |  Cited by: 0

Harry J. Solberg

THE MOVEMENT OF DEBT TO INSTITUTIONS AND ITS IMPLICATIONS FOR THE INTEREST RATE

Published: 3/1950,  Volume: 5,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1950.tb02471.x  |  Cited by: 2

Harry G. Guthmann

MODELS OF EQUITY VALUATION: THE GREAT SERM BUBBLE

Published: 5/1970,  Volume: 25,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1970.tb00505.x  |  Cited by: 2

Harry C. Sauvain, Michael Keenan

International Taxation and the Direction and Volume of Cross‐Border M&As

Published: 5/20/2009,  Volume: 64,  Issue: 3  |  DOI: 10.1111/j.1540-6261.2009.01463.x  |  Cited by: 179

HARRY P. HUIZINGA, JOHANNES VOGET

We show that the parent‐subsidiary structure of multinational firms created by cross‐border mergers and acquisitions is affected by the prospect of international double taxation. Specifically, the likelihood of parent firm location in a country following a cross‐border takeover is reduced by high international double taxation of foreign‐source income. At the same time, countries with high international double taxation attract smaller numbers of parent firms. A unilateral elimination of worldwide taxation by the United States is simulated to increase the proportion of parent firms locating in the United States following cross‐border mergers and acquisitions from 53% to 58%.

Portfolio Analysis with Factors and Scenarios

Published: 9/1981,  Volume: 36,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1981.tb04889.x  |  Cited by: 64

HARRY M. MARKOWITZ, ANDRÉF. PEROLD

Recently there has been a growing interest in the scenario model of covariance as an alternative to the one‐factor or many‐factor models. We show how the covariance matrix resulting from the scenario model can easily be made diagonal by adding new variables linearly related to the amounts invested; note the meanings of these new variables; note how portfolio variance divides itself into “within scenario” and “between scenario” variances; and extend the results to models in which scenarios and factors both appear where factor distributions and effects may or may not be scenario sensitive.

CAPITAL SHORTAGES: MYTH OR REALITY?

Published: 5/1976,  Volume: 31,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1976.tb01886.x  |  Cited by: 1

Paul Wachtel, Arnold Sametz, Harry Shuford

PERPETUAL FIRE INSURANCE

Published: 3/1958,  Volume: 13,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1958.tb04172.x  |  Cited by: 0

William M. Howard, Harry J. Solberg

THE MARKET IMPACT OF THE SALE OF LARGE BLOCKS OF STOCK

Published: 12/1965,  Volume: 20,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1965.tb02931.x  |  Cited by: 0

Harry G. Guthmann, Archie J. Bakay

Foundations of Technical Analysis: Computational Algorithms, Statistical Inference, and Empirical Implementation

Published: 8/2000,  Volume: 55,  Issue: 4  |  DOI: 10.1111/0022-1082.00265  |  Cited by: 828

Andrew W. Lo, Harry Mamaysky, Jiang Wang

Technical analysis, also known as “charting,” has been a part of financial practice for many decades, but this discipline has not received the same level of academic scrutiny and acceptance as more traditional approaches such as fundamental analysis. One of the main obstacles is the highly subjective nature of technical analysis—the presence of geometric shapes in historical price charts is often in the eyes of the beholder. In this paper, we propose a systematic and automatic approach to technical pattern recognition using nonparametric kernel regression, and we apply this method to a large number of U.S. stocks from 1962 to 1996 to evaluate the effectiveness of technical analysis. By comparing the unconditional empirical distribution of daily stock returns to the conditional distribution—conditioned on specific technical indicators such as head‐and‐shoulders or double bottoms—we find that over the 31‐year sample period, several technical indicators do provide incremental information and may have some practical value.

Mean‐Variance Versus Direct Utility Maximization

Published: 3/1984,  Volume: 39,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1984.tb03859.x  |  Cited by: 206

YORAM KROLL, HAIM LEVY, HARRY M. MARKOWITZ

Levy and Markowitz showed, for various utility functions and empirical returns distributions, that the expected utility maximizer could typically do very well if he acted knowing only the mean and variance of each distribution. Levy and Markowitz considered only situations in which the expected utility maximizer chose among a finite number of alternate probability distributions. The present paper examines the same questions for a case with an infinite number of alternate distributions, namely those available from the standard portfolio constraint set.

DISCUSSION

Published: 5/1966,  Volume: 21,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1966.tb00233.x  |  Cited by: 0

Sidney M. Robbins, Amyas Ames, Harry C. Sauvain

DISCUSSION

Published: 5/1962,  Volume: 17,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1962.tb04285.x  |  Cited by: 0

Donald R. Hodgman, David A. Alhadeff, Harry L. Barrett

Expectations, Tobin's q, and Industry Investment

Published: 5/1979,  Volume: 34,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1979.tb02121.x  |  Cited by: 21

BURTON G. MALKIEL, GEORGE M. VON FURSTENBERG, HARRY S. WATSON

Bank Funding Risk, Reference Rates, and Credit Supply

Published: 12/20/2024,  Volume: 80,  Issue: 1  |  DOI: 10.1111/jofi.13411  |  Cited by: 17

HARRY COOPERMAN, DARRELL DUFFIE, STEPHAN LUCK, ZACHRY WANG, YILIN (DAVID) YANG

Corporate credit lines are drawn more heavily when funding markets are stressed. This elevates expected bank funding costs. We show that credit supply is dampened by the associated debt‐overhang cost to bank shareholders. Until 2022, this impact was reduced by linking the interest paid on lines to a credit‐sensitive reference rate like the London interbank offered rate (LIBOR). We show that transition to risk‐free reference rates may exacerbate this friction. The adverse impact on credit supply is offset if drawdowns are expected to be deposited at the same bank, which happened at some of the largest banks during the global financial crisis and COVID recession.

DISCUSSION

Published: 5/1964,  Volume: 19,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1964.tb00771.x  |  Cited by: 0

Richard W. Baker, Leon T. Kendall, Walter C. Nelson, J. Charles Partee, David Fritz, Harry S. Schwartz