This paper used an event study approach to examine the impact of dividend reinvestment plans on shareholders returns in the pre- and post-imputation environment. The daily share return behaviour indicated that the announcement to introduce DRP was received indifferntly by the market prior to the...

Dividend reinvestment plans (DRPs) were introduced in Australia in 1982 primarily to help shareholders purchase new shares without transaction costs. Variants of the basic DRP were soon developed for taxation reasons to allow for income streaming. This paper examines the basic characteristics...

This event study examined the effect on shareholder returns of companies announcing their intention to introduce Dividend Reinvestment Plan (DRPs) offering a 10%, 7.5% and 5% discount. Overall the plans were received positively by the market. Also, the various discount sample results appear to...