IDEAS home Printed from https://ideas.repec.org/a/taf/apfiec/v10y2000i5p533-542.html
   My bibliography  Save this article

Dividend initiation announcements effects in initial public offerings

Author

Listed:
  • K. McCaffrey
  • P. Hamill

Abstract

This paper examines the market reaction to dividend initiation announcements by Initial Public Offerings (IPOs) in the UK. Using data for 131 Official Listed (OL) and 139 Unlisted Securities Market (USM) firms, covering the period 1982-1991, the study finds a positive market reaction to such announcements. Employing a random walk and random walk with a drift models to generate earnings expectations, the study finds that unexpected earnings are significantly positively related to the announcement day abnormal return, with unexpected dividends positive and significant, for the OL sample only. Contrary to prior research, no evidence of an 'interaction effect' between earnings and dividends signals is reported.

Suggested Citation

  • K. McCaffrey & P. Hamill, 2000. "Dividend initiation announcements effects in initial public offerings," Applied Financial Economics, Taylor & Francis Journals, vol. 10(5), pages 533-542.
    • Handle: RePEc:taf:apfiec:v:10:y:2000:i:5:p:533-542
    DOI: 10.1080/096031000416415
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/096031000416415
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/096031000416415?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. John Board & Alfonso Dufour & Charles Sutcliffe & Stephen Wells, 2005. "A False Perception? The relative riskiness of AIM and listed Stocks," ICMA Centre Discussion Papers in Finance icma-dp2006-01, Henley Business School, University of Reading.

    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:taf:apfiec:v:10:y:2000:i:5:p:533-542. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAFE20 .

    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.