I examine the predictability of dividend cuts based on the time interval between dividend announcement dates using a large dataset of U.S. firms from 1971 to 2014. The longer the time interval between dividend announcements, the larger the probability of a cut in the dividend per share,...

This paper examines the use of the payout ratio as a predictor of a firm's future earnings growth. Recent evidence rejects the hypothesis that firm which retain a large portion of their earnings have strong future earnings growth. Higher dividend payout ratios instead correspond to higher future...

This paper investigates the association between current dividends and analysts’ subsequent earnings forecast errors. This investigation is motivated by the evidence on analyst optimism and Ohlson (1991)’s fundamental valuation theory that dividends displace future permanent earnings. For the...

Whilst the ongoing banking regulatory reforms towards a comprehensive Basel III framework emphasise bank transparency, disclosure and a competitive banking market environment, very little is known about the empirical relationship between bank opacity and banking competition. We investigate the...

We examine the predictive ability of the aggregate earnings yield for market returns and earnings growth by estimating variance decompositions at multiple horizons. Based on weighted long-horizon regressions, we find that most of the variation in the earnings yield is due to return...

We examine the effect of the common ownership relation between brokerage houses and the firms covered by their analysts (referred to as co-owned brokerage houses, co-owned firms, and connected analysts, respectively) on analyst forecast performance. Common ownership can help the connected...