Download or read book Dividend Changes and the Persistence of Past Earnings Changes written by Adam S. Koch and published by . This book was released on 2007 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine whether the market interprets changes in dividends as a signal about the persistence of past earnings changes. Prior to observing this signal, investors may believe that past earnings changes are not necessarily indicative of future earnings levels. We empirically investigate whether a change in dividends alters investors' assessments about the valuation implications of past earnings. Results confirm the hypothesis that changes in dividends cause investors to revise their expectations about the persistence of past earnings changes. This effect varies predictably with the magnitude of the dividend change and the sign of the past earnings change.

Download or read book Dividend Changes and the Persistence of Past Earnings Changes Empirical Evidence from the Athens Stock Exchange written by Pantelis Marinakis and published by . This book was released on 2006 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: There will be examined whether the market interprets changes in dividends as a signal about the persistence of past earnings changes. Prior to observing the signal of this change, investors may believe that previous earnings variations are not necessarily indicative of future earnings levels. There will be investigated whether a change in dividends modifies investors' assessments about the valuation implications of past earnings. Results confirm the hypothesis that changes in dividends cause investors to revise their expectations about the persistence of past earnings changes. This effect varies predictably with the magnitude of the dividend change and the sign of the past earnings change.

Download or read book Confirming Dividend Changes and the Non Monotonic Investor Revision of Earnings Persistence written by Christian Müller and published by Springer Science & Business Media. This book was released on 2013-12-30 with total page 157 pages. Available in PDF, EPUB and Kindle. Book excerpt: The stylized facts that firms pay and investors react to dividends disregard dividend neutrality. Taking on the perspective that informational asymmetries are the central determinant for dividend value relevance, Christian Müller assumes that firm’s dividend decision conveys useful information to investors. He shows that investors use dividend changes to revise their a priori expectations about the persistence of a current earnings change. While his theoretical and empirical analyses generally imply that dividend changes constitute informative, but imperfect information signals, he further identifies situations in which they are substantial to investors. Christian Müller’s research comprehensively examines the informational role of dividend policy and provides new insights to the corresponding Bayesian investor learning process.

Download or read book Confirming Dividend Changes and the Non Monotonic Investor Revision of Earnings Persistence written by Christian Mueller and published by Springer Gabler. This book was released on 2014-01-02 with total page 137 pages. Available in PDF, EPUB and Kindle. Book excerpt: The stylized facts that firms pay and investors react to dividends disregard dividend neutrality. Taking on the perspective that informational asymmetries are the central determinant for dividend value relevance, Christian Müller assumes that firm’s dividend decision conveys useful information to investors. He shows that investors use dividend changes to revise their a priori expectations about the persistence of a current earnings change. While his theoretical and empirical analyses generally imply that dividend changes constitute informative, but imperfect information signals, he further identifies situations in which they are substantial to investors. Christian Müller’s research comprehensively examines the informational role of dividend policy and provides new insights to the corresponding Bayesian investor learning process.

Download or read book The role of dividend changes in the prediction of future changes in earnings an empirical analysis of quarterly data written by Antonio Zoratto Sanvicente, Livre-Docente and published by . This book was released on 1984 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book How Important Are Dividend Signals in Assessing Earnings Persistence written by Carsten Homburg and published by . This book was released on 2017 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: We build and test a Bayesian model that shows how investors revise their earnings persistence expectations after dividend announcements. When dividend changes confirm preceding earnings changes, our model predicts inverse u-shaped investor revisions conditional on the prior expectations for noisy dividend signals. As the dividend signal becomes more informative our model predicts that investor revisions will become more skewed converging to a monotonically decreasing relation for perfectly informative dividend signals. When dividend changes contradict preceding earnings changes, our model predicts u-shaped investor revisions. In empirical tests, we find results generally consistent with our model predictions.

Download or read book The Permanent Income Hypothesis of Corporate Dividend Policy written by Roger C. Kormendi and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We develop and test a model of corporate dividend policy based on the permanent income hypothesis (PIH) of Friedman (1957). The PIH implies that dividends are non-stationary and that the response of dividends to a change in earnings is positively related to the persistence of the change in earnings. Using a sample of 337 firms over the 40 year period from 1950-1989, we find the data to be strongly consistent with both implications of the PIH. We also find that earnings and dividends are not co-integrated, indicating that factors other than the permanent component of earnings, such as tax policy, clientele effects, transaction costs, etc. may have a significant impact on the long-run behavior of dividends, and implying that a properly specified dividend model relates the changes in dividends to changes in earnings. This contrasts with the implicitly co- integrated (levels) dividend model of Lintner (1956). Thus, we propose a new non co-integrated corporate dividend policy model that unifies the Lintner model with the PIH. Additionally, our evidence on the non-stationarity of dividends has implications for the stock market rationality debate, and the association between dividend changes and earnings persistence is consistent with Miller's )1987) proposition that dividend changes signal earnings persistence.

Download or read book Earnings Information Conveyed by Dividend Initiations and Omissions Classic Reprint written by Paul M. Healy and published by Forgotten Books. This book was released on 2018-02-27 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: Excerpt from Earnings Information Conveyed by Dividend Initiations and Omissions Together, the above three findings indicate that the information conveyed by dividend initiations and omissions is related to earnings changes in the year of and one year subsequent to the announcement of these dividend policy changes. This evidence is consistent with the dividend information hypothesis. The results are also consistent with l.intner's description that in making dividend policy decisions managers consider past, current and future earnings. Investors therefore interpret dividend initiations and omissions as changes in managements' About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

Download or read book Dividend Changes and Future Profitability written by Doron Nissim and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate the relation between dividend changes and future profitability, measured in terms of either future earnings or future abnormal earnings. Supporting quot;the information content of dividends hypothesis,quot; 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.

Download or read book Dividend Changes and Stock Price Changes written by Roger D. Wollstadt and published by . This book was released on 1963 with total page 84 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Market s Differential Reactions to Forward Looking and Backward Looking Dividend Changes written by Bong-Soo Lee and published by . This book was released on 2003 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Empirical evidence on the signaling hypothesis of dividends is weak and mixed. Some 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.

Download or read book Analysts Dividend Forecasts and Dividend Signaling written by Upinder Dhillon and published by . This book was released on 2003 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study complements existing research on the information content of dividends by focusing on the use of dividend expectations. We derive a measure of unexpected dividend changes, called dividend surprises, based on Value Line forecasts. Our results highlight a potentially serious sample misclassification arising from the extensively used naive dividend change method. Classifications of unexpected changes in dividends using dividend surprises result in stock price reactions and earnings changes that are consistent with the implications of dividend signaling models. Also, the approach followed in this paper permits the analysis of a significantly quot;forgottenquot; sample in previous event studies: Firms announcing no dividend changes in which investors (analysts) are expecting a change. We find that no change in dividends often reflects a negative dividend surprise and is indeed associated with negative stock price reaction and negative earnings changes. We provide evidence that the failure to find a relationship between dividend changes and future earning changes may be due to measurement error arising from misclassification of dividend changes. One implication of this study for future research is that empirical tests of dividend signaling models should incorporate dividend forecasts.

Download or read book Do Dividends Convey Information About Future Earnings written by Charles (Chad) Ham and published by . This book was released on 2019 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt: Yes. We show that dividend changes contain information about highly persistent changes in future economic income. Three methodological differences lead us to different conclusions from the extant literature: (i) we use an “event window approach” to cleanly delineate earnings after dividend changes from those before, (ii) we use alternative earnings measures to control for endogenous investment and asset write-downs surrounding dividend changes and (iii) we control for the non-linear relation between dividend changes and market reactions. Our results suggest dividend announcement returns reflect information about the level of permanent earnings, though the timing of the information content is difficult to reconcile with traditional signaling models.

Download or read book The Declaration of Dependence written by Jeffrey L. Huston and published by Archway Publishing. This book was released on 2015-11-30 with total page 266 pages. Available in PDF, EPUB and Kindle. Book excerpt: When it comes to investing, its not all about earnings per share. Many investors pay just as muchif not moreattention to whether a company pays dividends, dividend yields, and how fast dividends are expected to grow. Whether youre an investor or corporate executive, its important to consider how dividend policy can inflate or deflate stock prices. This book provides valuable insights into how dividend payouts affect success. Topics include: origins and types of dividend payments; taxes as an influence on dividend payments; stockholder reactions to dividend omissions, initiations, and reductions; utilities and why they consistently pay high dividends. The author highlights how managers of larger, more mature firms establish a declaration of dependence between their firms and their investors. The payment of a regular dividend, which fluctuates much less than underlying earnings, is not required by law but can be a sacred compact among investors and managers. Take a key step in evaluating your company and/or investment portfolio and stay on track with The Declaration of Dependence: Dividends in the Twenty-First Century.

Download or read book Dividend Changes and Valuation Relevant Information written by Joseph Ahrony and published by . This book was released on 1992 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Are Dividend Changes a Signal of Future Profitability written by John F. O'Driscoll and published by . This book was released on 2002 with total page 78 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Dividend Policy written by George Frankfurter and published by Elsevier. This book was released on 2003-06-24 with total page 249 pages. Available in PDF, EPUB and Kindle. Book excerpt: Dividend Policy provides a comprehensive study of dividend policy. It explores the puzzle presented by dividends: irrational and subject to fashion, yet popular and desirable, they remain a priority among managers, even while perceived as largely symbolic. After exploring the history of dividend payments, from the emergence of the modern corporation to current perspectives, it traces the evolution of academic models on dividend policy. Here the authors review models of symmetric and asymmetric information before analyzing academia's accomplishments in solving the dividend puzzle. Related subjects, such as valuation and wealth distribution, round out the authors' presentation about new ways to think about one of the most intriguing subjects in financial economics. The book is recommended for professors and students in departments of finance and business, corporate finance staff, and financial regulators. The only comprehensive study of dividend policy Covers the historical evolution of dividends and academic research on dividend policy Presents new ways of thinking about dividends and dividend policy