Information Associated with Dividend Initiations: Firm-Specific or Industry-Wide?
Year: 1998
Type: article
Abstract: We examine the intra-industry information effects of announcements of dividend initiations. Our results indicate that the stock prices of industry competitors do not react to dividend initiations. Further, analysts do not revise their earnings forecasts for nonannouncing, rival firms. These findings are not sensitive to the manner in which we estimate abnormal returns or calculate forecast revisions. Thus, the information conveyed to the market by the decision to initiate dividends contains no industry-wide component. Dividend initiation appears to be a firm-specific event.
Source: Financial Management
DOI: 10.2307/3666271
Authors: John S. Howe, Yang-pin Shen
Institutions: University of Missouri, National Chung Cheng University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1997976000