Cash Dividends and Share Repurchases – Two Corporate Payout Decisions
Cash Dividends and Share Repurchases – Two Corporate Payout Decisions

Summary/Abstract: The company's decision to remunerate shareholders through one form or another has been extensively studied by specialists due to its important implications. Among the most common forms of payout policies used in practice we chose to analyze cash dividends and public share repurchases. Both decisions represent key issues in the literature and various controversial theories are still trying to explain them. By systematizing the most relevant studies carried out in the field, this paper aims to bring into the light the most important results related to the two decisions and to find an answer to the question of whether these two processes are complementary or substitutable. The study is a theoretical approach but has a significant gain by opening the appetite for a current topic in international practice and literature.

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