Dividend reductions have long been considered a "last resort" action for firm managers. Managerial reluctance to reduce … dividends emanates from the view that dividend drops signal managerial pessimism regarding future earnings. Contrary to … expectations, studies show that earnings rebound significantly following a dividend reduction; yet investors react negatively to …

This paper investigates the impact of the 2001 tax reform in Germany on dividend announcement returns. With this major … market response to positive dividend surprises is more pronounced under the full imputation system, where dividends are … observed decline in the dividend response coefficient is synchronized with the 2001 tax reform and hence attributable to the …

. The valuation theory gives many clues for interpretation of dividend changes. At the start of literature review, the …This article measures the reaction of marginal investors to announcement of surprise dividend increase. However, the … dividend irrelevance (to investment decision) assumption is met. This assumption holds up-to-date valuation procedures leading …

We investigate shareholder wealth effects of stock dividends using a unique dataset from Oman in which many market … frictions that are used to explain the stock dividend announcement effect are either absent or limited. We find a positive stock … market reaction to stock dividend distributions. We also find that firms that distribute stock dividends experience favorable …

that institutional investors are net sellers in dividend reduction firms during the two quarters prior to the announcements …. They also trade more intensively in firms that do not prepare the market for dividend cuts or that have greater information …

Employing an event study approach, we examine 5,574 bond return reactions to unexpected quarterly dividend change … the same direction as dividend changes, which supports the hypothesis that dividend changes signal future firm performance …. These results still hold after we control for the financial crisis and dividend covenants and when we use alternative …

In this paper, we assess the long-term stock price impact of 1327 cash dividend payment initiations and 1156 cash … dividend payment omissions of firms listed on the NYSE and the NASDAQ, from 1972 to 2012. In particular we compare the annual … returns of dividend initiating and omitting firms and firms that are equally likely to initiate (or omit). We find larger …

Literature suggests that dividend has no impact on shareholders value in the absence of taxes and market imperfections …, funds for future investment will decrease and dividend may not increase in the future. Moreover, when dividend is taxable … market value after the dividend announcement, although the lost value is recovered from the cash dividend received, and they …