NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Why Are Corporate Payouts So High in the 2000s?

Kathleen Kahle, René M. Stulz

NBER Working Paper No. 26958
Issued in April 2020, Revised in August 2020
NBER Program(s):Corporate Finance

The annual inflation-adjusted amount paid out through dividends and repurchases by public industrial firms is three times larger from 2000 to 2018 than from 1971 to 1999. We find that 38% of the increase in aggregate annual payouts is explained by an increase in aggregate corporate income and 62% by an increase in the aggregate payout rate. At the firm level, changes in firm characteristics explain 71% (49%) of the increase in the average payout rate for the population (firms with payouts). Consistent with management having stronger payout incentives, payouts are more responsive to firm characteristics in the 2000s than before.

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Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w26958

 
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