caa a22 4500 388047798 CHVBK 20180307125042.0 cr unu---uuuuu 161130e199806 xx s 000 0 eng 10.2307/2331309 doi S0022109000000934 pii (NATIONALLICENCE)cambridge-10.2307/2331309 Shareholder Heterogeneity, Adverse Selection, and Payout Policy [Elektronische Daten] When shareholders have different plans to sell their shares, they will, in general, have different preferences concerning the firm's decision to pay out cash using dividends or share repurchase. We illustrate these different preferences and explore a model of payout policy that highlights the adverse selection costs of repurchases when managers have superior information about the value of the firm. We show that, in the absence of fixed costs to repurchasing shares, there is a separating equilibrium in which managers use taxable dividends to signal the quality of the firm, with better firms paying lower dividends, using repurchases for the remainder of the payout. With fixed costs to repurchasing, small payouts are made via dividend and large payouts are divided between repurchases and dividends, as in the no-fixed cost case. In both cases, the percentage of shares repurchased increases with the size of the payout and larger repurchases are better news. Copyright © School of Business Administration, University of Washington 1998 Lucas Deborah J. Northwestern University and NBER McDonald Robert L. Northwestern University, J. L. Kellogg Graduate School of Management, Department of Finance, Leverone Hall, Evanson, IL 60208. Journal of Financial and Quantitative Analysis Cambridge University Press 33/2(1998-06), 233-253 0022-1090 33:2<233 1998 33 JFQ https://doi.org/10.2307/2331309 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.2307/2331309 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Lucas Deborah J. Northwestern University and NBER NATIONALLICENCE 700 1- McDonald Robert L. Northwestern University, J. L. Kellogg Graduate School of Management, Department of Finance, Leverone Hall, Evanson, IL 60208 NATIONALLICENCE 773 0- Journal of Financial and Quantitative Analysis Cambridge University Press 33/2(1998-06), 233-253 0022-1090 33:2<233 1998 33 JFQ CC0 http://creativecommons.org/publicdomain/zero/1.0 nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-cambridge