STOCK DIVIDENDS AS SIGNALS

Research output: Contribution to journalArticle

27 Citations (Scopus)

Abstract

This study analyzes stock dividends as signals from managers. It is argued that in the presence of information asymmetries between managers and investors, stock dividends provide a relatively inexpensive and unambiguous signalling device. Based on an examination of the daily returns around 317 stock dividend announcements, it is concluded that these announcements are interpreted by investors as signals from managers. Further analysis also indicates that stock dividend size is positively related to announcement day returns.

Original languageEnglish (US)
Pages (from-to)1-12
Number of pages12
JournalJournal of Financial Research
Volume6
Issue number1
DOIs
StatePublished - Jan 1 1983

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Stock dividends
Managers
Investors
Announcement
Dividend announcements
Asymmetry of information

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance

Cite this

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abstract = "This study analyzes stock dividends as signals from managers. It is argued that in the presence of information asymmetries between managers and investors, stock dividends provide a relatively inexpensive and unambiguous signalling device. Based on an examination of the daily returns around 317 stock dividend announcements, it is concluded that these announcements are interpreted by investors as signals from managers. Further analysis also indicates that stock dividend size is positively related to announcement day returns.",
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STOCK DIVIDENDS AS SIGNALS. / Woolridge, Joseph Randall.

In: Journal of Financial Research, Vol. 6, No. 1, 01.01.1983, p. 1-12.

Research output: Contribution to journalArticle

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