IDEAS home Printed from https://ideas.repec.org/a/bla/jfnres/v14y1991i1p33-49.html
   My bibliography  Save this article

Dividend Change Announcement Effects And Earnings Volatility And Timing

Author

Listed:
  • James W. Wansley
  • C. F. Sirmans
  • James D. Shilling
  • Young‐jin Lee

Abstract

Recent modeling using the asymmetric information framework suggests that the magnitude of a market response to dividend change announcements should be related to the timing of the dividend announcement vis‐a‐vis the earnings release and to the stability of those earnings. The announcement effects of regular quarterly dividend changes are tested and these effects are related to the percentage change in the dividend yield, to the stability of the firm's earnings, to the timing of dividend and earnings announcements, and to the level of earnings compared with prior quarters. Analysis indicates that significant relationships exist between the announcement effect and changes in the dividend yield, and whether the dividend change is positive or negative. Only weak evidence exists that dividend announcement effects are larger when current earnings are unknown.

Suggested Citation

  • James W. Wansley & C. F. Sirmans & James D. Shilling & Young‐jin Lee, 1991. "Dividend Change Announcement Effects And Earnings Volatility And Timing," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 14(1), pages 33-49, March.
    • Handle: RePEc:bla:jfnres:v:14:y:1991:i:1:p:33-49
    DOI: 10.1111/j.1475-6803.1991.tb00643.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1475-6803.1991.tb00643.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1475-6803.1991.tb00643.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Frankfurter, George M. & Wood, Bob Jr., 2002. "Dividend policy theories and their empirical tests," International Review of Financial Analysis, Elsevier, vol. 11(2), pages 111-138.
    2. Roger M. Shelor & Dennis T. Officer, 1994. "The Impact For Stockholders When Regulated Firms Revise Dividend Policy," Review of Financial Economics, John Wiley & Sons, vol. 3(2), pages 121-129, March.
    3. Kevin Hon Sheng Yap & Seow Eng Ong & Wee Yong Yeo, 2018. "Demystifying the Management Structure Puzzle: an Empirical Investigation into the Drivers of REIT Internalization," The Journal of Real Estate Finance and Economics, Springer, vol. 57(3), pages 367-399, October.
    4. Bozos, Konstantinos & Nikolopoulos, Konstantinos & Ramgandhi, Ghanamaruthy, 2011. "Dividend signaling under economic adversity: Evidence from the London Stock Exchange," International Review of Financial Analysis, Elsevier, vol. 20(5), pages 364-374.
    5. Dasilas, Apostolos & Leventis, Stergios, 2011. "Stock market reaction to dividend announcements: Evidence from the Greek stock market," International Review of Economics & Finance, Elsevier, vol. 20(2), pages 302-311, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jfnres:v:14:y:1991:i:1:p:33-49. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/sfaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.