Scrip Dividends and Share Buy-Back Strategies Based on Volatility

Huerga, Ángel and Rodríguez Monroy, Carlos (2018). Scrip Dividends and Share Buy-Back Strategies Based on Volatility. In: "12th International Conference on Industrial Engineering and Industrial Management, XXII Congreso de Ingeniería de Organización", July 12-13, 2018, Girona (España). pp. 1-8.

Description

Title: Scrip Dividends and Share Buy-Back Strategies Based on Volatility
Author/s:
  • Huerga, Ángel
  • Rodríguez Monroy, Carlos
Item Type: Presentation at Congress or Conference (Article)
Event Title: 12th International Conference on Industrial Engineering and Industrial Management, XXII Congreso de Ingeniería de Organización
Event Dates: July 12-13, 2018
Event Location: Girona (España)
Title of Book: 12th International Conference on Industrial Engineering and Industrial Management, XXII Congreso de Ingeniería de Organización
Date: July 2018
Subjects:
Freetext Keywords: Scrip Dividends; Dividend Policies; Options; Share Buy-Back; Volatility; Agency Problem
Faculty: E.T.S.I. Industriales (UPM)
Department: Ingeniería de Organización, Administración de Empresas y Estadística
Creative Commons Licenses: Recognition - No derivative works - Non commercial

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Abstract

The number of listed companies offering alternatives to cash dividends is increasing in Europe. Companies can reduce the cash outflows by giving shareholders the option to receive either shares or cash. Some investors favor scrip dividends due to the implicit free call option attached to the scrip distributions and recent studies confirm that the market does not react negatively, helping to reduce the agency problem. Additionally, companies can avoid dilution by repurchasing the shares offered in the scrip. Repurchase strategies using volatility and derivatives can guarantee a lower repurchase price, improving the capital ratios of the company and increasing Book Value of Equity per Share (BVPS).

More information

Item ID: 55471
DC Identifier: http://oa.upm.es/55471/
OAI Identifier: oai:oa.upm.es:55471
Official URL: http://epsapps.udg.edu/cio2018/
Deposited by: Memoria Investigacion
Deposited on: 20 Jun 2019 15:51
Last Modified: 20 Jun 2019 15:51
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