We show that the dividend growth rate implied by the futures market is informative about (i) the expected dividend growth rate and (ii) the expected dividend risk premium. We model the dividend risk premium and explore its implications for the predictability of dividend growth and aggregate stock returns. We show that accounting for the dividend risk premium strengthens the predictability of di...

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 ...

We hypothesize that family firms’ dividend policies are in part determined by a consumption smoothing motive of shareholders. Our paper tests this hypothesis using Japanese tax reform 2011 which increased the rate for only some groups major In quasi-experimental setting, we find firms with non-executive shareholders, who were likely rentiers, counteracted increase increasing dividends. This beh...

Abstract This article shows that, for major equity markets, the proportion of index values attributable to first 5 years dividends dropped substantially in quarter 2020 and that this drop was not reversed by end year. In cross section, breakdown dividend smoothing due COVID-19 less severe firms with higher operating cash flows more positively coskewed stock returns, it pronounced those leverage...

ABSTRAK Tujuan penelitian – Untuk menganalisa dan mengevaluasi praktik income smoothing yang terjadi pada perusahaan LQ45 di BEI serta mengetahui faktor-faktor apa saja berpengaruh terhadap periode tahun 2014-2019. Desain/Metodologi/Pendekatan Populasi digunakan dalam ini adalah 45 terdaftar indeks kemudian dipilih sebanyak 23 sampel diseleksi dengan metode purposive sampling. Indeks Eckel untu...

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...