NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Stefano Rossi

Professor of Finance
Bocconi University
Via Rontgen, 1
20136 Milano,
Italy

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org

NBER Working Papers and Publications

January 2018The Information Content of Dividends: Safer Profits, Not Higher Profits
with Roni Michaely, Michael Weber: w24237
Contrary to the central predictions of signaling models, changes in profits do not empirically follow changes in dividends, and firms with the least need to signal pay the bulk of dividends. We show both theoretically and empirically that dividends signal safer, rather than higher, future profits. Using the Campbell (1991) decomposition, we are able to estimate expected cash flows from data on stock returns. Consistent with our model's predictions, cash-flow volatility changes in the opposite direction from that of dividend changes, and larger changes in volatility come with larger announcement returns. We find similar results for share repurchases. Crucially, the data support the prediction---unique to our model---that the cost of the signal is foregone investment opportunities. We conclu...
March 2010Returns to Shareholder Activism: Evidence from a Clinical Study of the Hermes UK Focus Fund
with Marco Becht, Julian Franks, Colin Mayer
in Corporate Governance, Michael Weisbach, editor
November 2005Spending Less Time with the Family: The Decline of Family Ownership in the United Kingdom
with Julian Franks, Colin Mayer
in A History of Corporate Governance around the World: Family Business Groups to Professional Managers, Randall K. Morck, editor
July 2004Spending Less Time with the Family: The Decline of Family Ownership in the UK
with Julian Franks, Colin Mayer: w10628
Family ownership was rapidly diluted in the twentieth century in Britain. The main cause was equity issued in the process of making acquisitions. In the first half of the century, it occurred in the absence of minority investor protection and relied on directors of target firms protecting the interests of shareholders. Families were able to retain control by occupying a disproportionate number of seats on the boards of firms. However, in the absence of large stakes, the rise of hostile takeovers and institutional shareholders made it increasingly difficult for families to maintain control without challenge. Potential targets attempted to protect themselves through dual class shares and strategic share blocks but these were dismantled in response to opposition by institutional shareholders ...

Published: Julian Franks & Colin Mayer & Stefano Rossi, 2005. "Spending Less Time with the Family: The Decline of Family Ownership in the United Kingdom," NBER Chapters, in: A History of Corporate Governance around the World: Family Business Groups to Professional Managers, pages 581-612 National Bureau of Economic Research, Inc.

 
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