Charitou, Andreas; Lambertides, Neophytos; Theodoulou, … - 2010
This study extends the Grullon, Michaely and Swaminathan (2002) analysis by incorporating default risk. Using data for … firms that either increased or initiated cash dividend payments during the 23-year period 1986-2008, we find reduction in … default risk. This reduction is shown to be a priced risk factor beyond the Fama and French (1993) risk measures, and that it …