We propose and implement a new test of the dividend signaling hypothesis that is designed to discriminate between … dividend signaling and other theories that would account for the apparent existence of a dividend preference. Our test refines … the use of data on stock price responses to dividend announcements. In particular, we study the effect of dividend …

We examine abnormal stock returns surrounding contemporaneous earnings and dividend announcements in order to determine … interaction effect.The abnormal return corresponding to any earnings or dividend announcement depends upon the value of the other … more credence to unanticipated dividend increases or decreases when earnings are also above or below expectations, and vice …

We examine the hypothesis that dividend taxes are capitalized into share prices by focusing on investors' implicit …-in equity is distributable as a tax-free return of capital. Consistent with dividend tax capitalization, firm-level results for … addition, differences in dividend tax rates across U.S. tax regimes are associated with predictable differences in the …

We empirically document that stock prices moved inversely with dividend yields during the May, 1997 week, when the … share prices of other firms. Among firms paying dividends, the change in share prices was decreasing in dividend yields. The …

In a Modigliani-Miller world, price equals the risk-adjusted present value of future dividends and dividend policy is … their present values and they are invariant with respect to dividend policy. Residual income measures with these features … are identified under two assumptions: dividend policy does not alter risk premiums and income earned from investments …

This paper presents a bound on the variance of the price-dividend ratio and a decomposition of the variance of the … price-dividend ratio into components that reflect variation in expected future discount rates and variation in expected … future dividend growth. Unobserved discount rates needed to make the variance bound and variance decomposition hold are …

between the log dividend-price ratio and mathematical expectations of future log real dividend changes and future real … dividend growth, measured real discount rates and unexplained factors in determining the dividend-price ratio …

Numerous empirical studies have attempted to measure the effect of changes in dividend policy on corporate equity … values. One of the most popular study methodologies has been an examination of share price changes around ex-dividend days …. Comparing the movement in a stock's price with its nominal dividend payment leads to estimates of the stock market's relative …