Recent empirical studies of dividend taxation have found that: (1) dividend tax cuts cause large, immediate increases in dividend payouts, and (2) the increases are driven by firms with high levels of shareownership among top executives or the board of directors. These findings are inconsistent with existing "old view" and "new view" theories of dividend taxation. We propose a simple alternativ...

Since the equity premium as well as the risk-free rate puzzle question the concepts central to financial and economic modeling, we apply behavioral decision theory to asset pricing in view of solving these puzzles. U.S. stock market data for the period 1960-2003 and German stock market data for the period 1977-2003 show that emotional investors who act in accordance to Bell's (1985) disappointm...

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...

this article conducts a research about the relationship between cash dividend policy and enterprise value based on the data coming from the A-share listed companies over period 2005-2009. In conclusion, the enterprise value has a negative correlation with the incremental and the degressive cash dividend per share, and has a positive correlation with the stable cash dividend per share. Keywords—...

dividend policy is one of the most important financial decisions that managers encounter. this study contributes to the literature of dividend and empirical research investigating the effects of dynamic factors in tehran stock exchange. based on some criteria, the study contains 133 listed firms over a 10-year period from 2001 to 2010. to test the research hypotheses, this study uses fixed effe...

Previous empirical studies have documented that equity prices react to announcements of unexpected dividend changes. The most promising hypothesis forwarded as an explanation of this phenomenon is the dividend signalling hypothesis. Building on a foundation of dividend signalling models, this study employs an expanded set of explanatory variables to explain excess returns documented around divi...

This paper measures the effect of dividend initiation announcements on firms’ stock returns using a propensity score matching approach. Unlike the traditional event study methodology, propensity score matching can reduce the bias in the estimation of dividend initiation effects by controlling for the existence of confounding factors. Consistent with previous studies, the results show that divid...

The dividend policy is one of the most debated topics in the finance literature. According to the dividend signalling hypothesis, which has motivated a significant amount of theoretical and empirical research, dividend change announcements trigger share returns because they convey information about management’s assessment on firms’ future prospects. Consequently, a dividend increase (decrease) ...

This paper investigates the determinants of dividend policy for Australian DCs and MCs. In considering dividend payout ratios we adopt two definitions – cash dividends and total dividends. The cash dividend payout ratios consists of cash dividends to net earnings while total dividend payout ratios consists of both cash dividends and share repurchases to net earnings. The determinants of foreign...

This paper offers a new mathematical formulation that addresses the relationship between expected price-to-book ratio, dividend per share, dividend payout ratio, systematic and unsystematic risks. The sample includes the non-financial firms in the DJIA covering the period 1997-2006. The general results show that the expected price-to-book ratios are: (a) positively associated with the expected ...