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Dividend Changes (dividend + change)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting100%

Selected Abstracts

Dividend Changes and Future Profitability

THE JOURNAL OF FINANCE, Issue 6 2001
Doron Nissim
We investigate the relation between dividend changes and future profitability, measured in terms of either future earnings or future abnormal earnings. Supporting "the information content of dividends hypothesis," we find that dividend changes provide information about the level of profitability in subsequent years, incremental to market and accounting data. We also document that dividend changes are positively related to earnings changes in each of the two years after the dividend change. [source]

The Market's Differential Reactions to Forward-Looking and Backward-Looking Dividend Changes

THE JOURNAL OF FINANCIAL RESEARCH, Issue 4 2003
Bong-Soo Lee
Abstract Empirical evidence on the signaling hypothesis of dividends is weak and mixed. Recent studies find that dividend changes reflect mostly current and past earnings but not future earnings. We provide a model in which not all dividend changes contain new information about future earnings. Some dividend decisions are backward looking (noninformation or nonsignaling events). Other dividend decisions are forward looking (information or signaling events). The model helps identify the two types of dividend changes and predicts that the market will respond strongly only to forward-looking dividend changes. We provide evidence consistent with the implications of the model. [source]

Dividend Changes and Future Profitability

THE JOURNAL OF FINANCE, Issue 6 2001
Doron Nissim
We investigate the relation between dividend changes and future profitability, measured in terms of either future earnings or future abnormal earnings. Supporting "the information content of dividends hypothesis," we find that dividend changes provide information about the level of profitability in subsequent years, incremental to market and accounting data. We also document that dividend changes are positively related to earnings changes in each of the two years after the dividend change. [source]

The Market's Differential Reactions to Forward-Looking and Backward-Looking Dividend Changes

THE JOURNAL OF FINANCIAL RESEARCH, Issue 4 2003
Bong-Soo Lee
Abstract Empirical evidence on the signaling hypothesis of dividends is weak and mixed. Recent studies find that dividend changes reflect mostly current and past earnings but not future earnings. We provide a model in which not all dividend changes contain new information about future earnings. Some dividend decisions are backward looking (noninformation or nonsignaling events). Other dividend decisions are forward looking (information or signaling events). The model helps identify the two types of dividend changes and predicts that the market will respond strongly only to forward-looking dividend changes. We provide evidence consistent with the implications of the model. [source]