We present a new approach to examining the dividend signalling hypothesis by investigating dividend resumptions by former payers. Evidence regarding the signalling hypothesis has been mixed to date. In support of previous work, we find that dividend policy is sticky, whereby the achievement of profitability does not necessarily lead to the resumption of dividend payment. We find no evidence of ...

High dividend yields imply that either future dividend growth must be low, or future discount rates must be high, or both. While previous studies have focused on the predictability of expected returns from dividend yields, dividend yields also strongly predict future dividends, and the predictability of dividend growth is much stronger than discount rates returns at a 1-year horizon. Inference ...

Abstract This paper examines the relation between dividend payments and stock prices of all firms in German prime standard DAX 30 time period from 2012 to 2019. The irrelevance theory introduced by Miller Modigliani states that must not have an impact on a perfect market. In contrast, signaling puzzle indicate are likely profound price. According our findings ex-dividend decrease was significan...

Based upon an examination of 987 ex-dividend events that took place on the Taiwan Stock Exchange between January 1992 and December 2006, we find that differential taxes are an important factor in terms of their effects on share prices and the behavior of investors around the ex-dividend day. Ex-day price drop ratio increases with the average investor’s preference for dividend relative to capita...

3 ABSTRACT This paper investigates the dividend decisions of firms in the UK reporting losses after sustained periods of profitability. It is found that loss-making firms are more likely to reduce dividends compared to firms that remain profitable, although a loss is far from a guarantee that the dividend payment will be reduced. A lower propensity to reduce dividends is found in the UK relativ...

The article deals with dividends and their distribution from investors from a theoretical point of view. Some studies try to analyzed the reaction of the market on the dividend announcement and found out the change of dividend policy is associated with abnormal returns around the dividend announcement date. Another researches directly questioned the investors about their dividend preference and...

This paper examines the effect of governance and managerial alignment on dynamic dividend behavior of managers. I use a novel empirical approach to provide evidence on the role of governance and managerial alignment in explaining variation in dividend smoothing, incremental dividend decisions, and dynamic dividend behavior. Managers subject to weak monitoring and misaligned incentives are under...

Dividend relevance has been a subject of significant recent interest for academicians and researchers in the area of hospitality finance. The subject has attracted noticeable controversy, given the stringent or no-dividend payout policies observed in many hospitality firms. This study builds on existent dividend literature in hospitality finance by examining the relevance of cash dividends for ...

The purpose of this study is to investigate the dynamic dividend policy of the firms in Korea. In particular, this study empirically tests whether Korean firms follow stable dividend policies as in developed markets where dividend smoothing is a stylized fact. The paper also identifies firm-level factors that influence the degree of dividend smoothing. For this purpose, 299 firms listed on Kore...

The main aim of this paper is to examine the non-linear relationship between financial performance and level dividends for a recent period an international sample. Subsidiary, we have included some firm characteristics revisit their influence over paid. Using both GMM Quantile Regression, found that there paid performance. Among dividend theories, signaling effect theory, lifecycle catering the...