Manoj Kulchania accepted for publication in European Financial Management

Mike Ilitch School of Business Associate Professor of Finance Manoj Kulchania has been accepted for publication in European Financial Management, which publishes significant new finance research on timely issues and highlights key trends in Europe with articles covering international research and practice that have a direct or indirect bearing on Europe.

Kulchania’s single-authored article is titled, “Productivity and Payout Policy.”


I investigate how a firm’s total factor productivity (TFP) is related to its payout policy. I find that firms with higher TFP are more likely to pay dividends and repurchase shares. Such firms also pay higher dividends and repurchase more shares, even after controlling for income and other factors known to affect payout policy. Results are robust to propensity score matching and other analysis, including adoption of productivity-enhancing technology. I find that firms with higher TFP earn higher future operating income; productive firms with higher agency concerns pay back more, thus draining resources that could potentially be misused.

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