Journal ArticleDOI
The Information Content of Quarterly Dividend Changes
Reads0
Chats0
TLDR
In this paper, the authors show that dividend changes reveal new information about future earnings levels and are mixed with regard to future earnings variance, and they also show that the effect of changes in the distribution of dividends on future earnings is mixed with respect to future variance.Abstract:
This paper shows that dividend changes reveal new information about future earnings levels and are mixed with regard to future earnings variance. Revisions of Value Line earnings forecasts spanning...read more
Citations
More filters
Journal ArticleDOI
The Information Content of Dividend Changes: Cash Flow Signaling, Overinvestment, and Dividend Clienteles
TL;DR: In this paper, the authors examine the information content of dividend change announcements and find that announcement period excess returns are positively related to the magnitude of the standardized dividend change and to the dividend yield, but unrelated to Tobin's Q.
Journal ArticleDOI
The Cash-Flow Permanence and Information Content of Dividend Increases Versus Repurchases
Wayne R. Guay,Jarrad Harford +1 more
TL;DR: This article found that post-shock cash flows of dividend increasing firms exhibit less reversion to pre-shock levels compared with repurchasing firms and that the stock market uses the announcement of the payout method to update its beliefs about the permanence of cash-flow shocks.
Posted Content
Corporate Payout Policy
TL;DR: In this paper, the authors present a synthesis of academic research on corporate payout policy grounded in the pioneering contributions of Lintner (1956) and Miller and Modigliani (1961), concluding that a simple asymmetric information framework that emphasizes the need to distribute FCF and that embeds agency costs does a good job of explaining the main features of observed payout policies.
Journal ArticleDOI
Dividend Changes and the Persistence of Past Earnings Changes
Adam S. Koch,Amy X. Sun +1 more
TL;DR: In this paper, the authors examine whether the market interprets changes in dividends as a signal about the persistence of past earnings changes and empirically investigate whether a change in dividends alters investors' assessments about the valuation implications of past profits.
Journal ArticleDOI
Dividend changes, abnormal returns, and intra-lndustry firm valuations
TL;DR: In this paper, the authors investigated whether the dividend change of one firm is associated with the stock price performance of other companies in the same industry and found that there is some small positive information transfer.
References
More filters
Journal ArticleDOI
A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity
TL;DR: In this article, a parameter covariance matrix estimator which is consistent even when the disturbances of a linear regression model are heteroskedastic is presented, which does not depend on a formal model of the structure of the heteroSkewedness.
Book
Regression Diagnostics: Identifying Influential Data and Sources of Collinearity
TL;DR: In this article, the authors present a method for detecting and assessing Collinearity of observations and outliers in the context of extensions to the Wikipedia corpus, based on the concept of Influential Observations.
Journal ArticleDOI
Dividend Policy, Growth, and the Valuation of Shares
TL;DR: In this paper, the effect of differences in dividend policy on the current price of shares in an ideal economy characterized by perfect capital markets, rational behavior, and perfect certainty is examined.
Journal ArticleDOI
Dividend Policy under Asymmetric Information
Merton H. Miller,Kevin Rock +1 more
TL;DR: In this article, the authors extend the standard finance model of the firm's dividend/investment/financing decisions by allowing the managers to know more than outside investors about the true state of the current earnings.
Journal ArticleDOI
Imperfect Information, Dividend Policy, and "The Bird in the Hand" Fallacy
TL;DR: In this article, the authors assume that outside investors have imperfect information about firms' profitability and that cash dividends are taxed at a higher rate than capital gains, and they derive a comparative static result that relates the equilibrium level of dividend payout to the length of investors' planning horizons.