DSpace
 
  Repositório Institucional da Universidade de Aveiro > Instituto Superior de Contabilidade e Administração > ISCA - Working paper >
 Signalling with dividends? new evidence from Europe
Please use this identifier to cite or link to this item http://hdl.handle.net/10773/6598

title: Signalling with dividends? new evidence from Europe
authors: Vieira, Elisabete F. Simões
Raposo, Clara C.
keywords: Cash Dividends, Maturity Hypothesis, Signalling Hypothesis
issue date: 2007
abstract: According to the dividend signalling hypothesis, dividend change announcements trigger share returns because they convey information about management’s assessment on firms’ future prospects. We analyse the classical assumptions of the dividend signalling hypothesis, using data from three European countries. The evidence gives no support to a positive relation between dividend change announcements and the market reaction for French firms, and only weak support for the Portuguese and UK firms. After accounting for non-linearity in the mean reversion process, the global results do not give support to the assumption that dividend change announcements are positively related with future earnings changes. We also formulate two hypotheses in order to explore the window dressing phenomenon and the maturity hypothesis, finding some evidence in favour of both, especially in the UK market.
URI: http://hdl.handle.net/10773/6598
source: SSRN
appears in collectionsISCA - Working paper

files in this item

file description sizeformat
SSRN-Sign.pdfDocumento principal396.71 kBAdobe PDFview/open
statistics

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.

 

Valid XHTML 1.0! RCAAP OpenAIRE DeGóis
ria-repositorio@ua.pt - Copyright ©   Universidade de Aveiro - RIA Statistics - Powered by MIT's DSpace software, Version 1.6.2