We propose a general equilibrium model with multiple securities in which investors’ risk preferences and expectations of dividend growth are time-varying. While time-varying risk preferences induce the standard positive relation between the dividend yield and expected returns, time-varying expected dividend growth induces a negative relation between them. These offsetting effects reduce the abi...

The aim of this research is to analyze the connection between dividend announcement and stock price on Croatian capital market using event study methodology. Research period was the period from the year 2007 to the year 2009. Results have confirmed that dividend change has statistically significant value for investors. Dividend increase and dividend decrease resulted with statistically signific...

Article history: Received 16 July 2012 Received in revised form 23 August 2013 Accepted 3 September 2013 Available online 13 September 2013 The global financial crisis has caused controversial discussions about the capital base of the banking industry in Europe. Dividend cuts and omissions have been suggested as one possibility to improve the financial strength of banks by retaining earnings. H...

Abstract This empirical study examines the dividend policy of insurance companies in Italy after Global Financial Crisis. There is clear evidence for signaling this period time. Moreover, relationship between stock prices and payments analyzed more detail. Additionally, paper also discusses macroeconomic regulatory issues that could be relevance Italian industry. In context exemplarily possible...

This paper examines earnings changes surrounding firms' decisions to initiate or omit dividend payments. Firms that initiate (omit) dividend payments have positive (negative) earnings changes both before and after the dividend policy change. The subsequent earnings changes arc positively related to the dividend announcement return. Also, the stock price reactions at the announcement of subseque...

ABSTRAK Penelitian ini bertujuan untuk menentukan dan menganalisa pengaruh profitabilitas, leverage, ukuran perusahaan, pertumbuhan likuiditas terhadap kebijakan dividen pada perusahaan manufaktur yang terdaftar di bursa Efek Indonesia dalam tahun amatan 2013-2017. Populasi penelitian adalah semua BEI, dengan sampel diperoleh 37 sesuai kriteria ditetapkan. Data tersebut dianalisa menggunakan pe...

this paper aims to determine the impact of dividend policy on stock price volatility by taking firms listed on tehran stock exchange.  a sample of 68 listed companies from tehran stock exchange is examined for a period from 2001 to 2012.  the estimation is based on cross-sectional ordinary least square regression analysis to find the relationship between share price volatility and dividend poli...

Our paper suggests a simple, recursive residuals (out-of-sample) graphical approach to evaluating the predictive power of popular equity premium and stock market timeseries forecasting regressions. When applied, we find that dividend ratios should have been known to have no predictive ability even prior to the 1990s, and that any seeming ability even then was driven by only two years, 1973 and ...

Yes. We find that dividend changes predict future unexpected earnings changes in each of the next four quarters. These earnings impacts are persistent, leading to higher than expected earnings levels for at least three years after the dividend change. These results are robust to various measures of expected earnings, including analyst forecasts and a flexible function of past earnings and retur...