An empirical investigation of the dividend decision in Irish companies
type: CreativeWork
description: This thesis investigates corporate Ireland's attitude to dividend payments and examines how the Irish stock market reacts to company announcements about dividends. Prior to this study, the attitude of company executives and investors to dividend policy in Ireland was not reported in the academic literature in a systematic fashion. A number of small studies on the topic had been undertaken but the findings of those studies are relatively old and the perspective adopted limited.In the mid-1980s, company managers in the US and the UK aggressively altered dividend policy because the disadvantageous income tax rates to which dividends were subject meant that paying dividends was not an efficient way to return money to shareholders(Campbell, 2003). The double taxation of cash dividends was the primary motivation behind the decision of corporations to repurchase their own shares rather than implementing or increasing dividend payouts (Wood, 2002). In addition, for much of the 1990s dividends seemed unimportant to company executives and investors, as much of the share valuation analysis undertaken by financial commentators, appeared to focus on top line and bottom line growth rather than expectations about periodic dividend distributions (Goodbody, 2003).However, dividends have recently become more important as growth rates in earnings have declined (Jones, 2004).The Irish economy has changed dramatically over the last decade with greater wealth,increased numbers at work and an ageing population (E. S. R. I., 2003). In this new environment, Irish dividend distributions, and more specifically the taxation treatment of those distributions, is an increasingly important issue for Irish economic policy makers as they seek to encourage companies to re-invest their profits for the long-term and to provide incentives to individuals to increase savings and provide for retirement. In this new environment, Irish dividend distributions, and more specifically the taxation treatment of t…
abstract: This thesis investigates corporate Ireland's attitude to dividend payments and examines how the Irish stock market reacts to company announcements about dividends. Prior to this study, the attitude of company executives and investors to dividend policy in Ireland was not reported in the academic literature in a systematic fashion. A number of small studies on the topic had been undertaken but the findings of those studies are relatively old and the perspective adopted limited.In the mid-1980s, company managers in the US and the UK aggressively altered dividend policy because the disadvantageous income tax rates to which dividends were subject meant that paying dividends was not an efficient way to return money to shareholders(Campbell, 2003). The double taxation of cash dividends was the primary motivation behind the decision of corporations to repurchase their own shares rather than implementing or increasing dividend payouts (Wood, 2002). In addition, for much of the 1990s dividends seemed unimportant to company executives and investors, as much of the share valuation analysis undertaken by financial commentators, appeared to focus on top line and bottom line growth rather than expectations about periodic dividend distributions (Goodbody, 2003).However, dividends have recently become more important as growth rates in earnings have declined (Jones, 2004).The Irish economy has changed dramatically over the last decade with greater wealth,increased numbers at work and an ageing population (E. S. R. I., 2003). In this new environment, Irish dividend distributions, and more specifically the taxation treatment of those distributions, is an increasingly important issue for Irish economic policy makers as they seek to encourage companies to re-invest their profits for the long-term and to provide incentives to individuals to increase savings and provide for retirement. In this new environment, Irish dividend distributions, and more specifically the taxation treatment of t…
author: McCluskey, Thomas G.
language: eng
date published: 2005
date modified: 2026-07-24T02:07:25Z
provider: University of Dundee
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: University of Dundee