Are Certain Dividend Increases Predictable? The Effect of Repeated Dividend Increases on Market Returns

Michayluk, D; Neuhauser, K; Walker, S

Are Certain Dividend Increases Predictable? The Effect of Repeated Dividend Increases on Market Returns

Michayluk, D

Neuhauser, K Walker, S

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Publisher:: Wiley
Publication Type:: Journal Article
Citation:: Journal of Applied Corporate Finance, 2014, 26 (4), pp. 118 - 126
Issue Date:: 2014

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Field	Value	Language
dc.contributor.author	Michayluk, D https://orcid.org/0000-0001-9020-0855	en_US
dc.contributor.author	Neuhauser, K	en_US
dc.contributor.author	Walker, S https://orcid.org/0000-0002-7130-6520	en_US
dc.date.issued	2014	en_US
dc.identifier.citation	Journal of Applied Corporate Finance, 2014, 26 (4), pp. 118 - 126	en_US
dc.identifier.issn	1745-6622	en_US
dc.identifier.uri	http://hdl.handle.net/10453/117375
dc.description.abstract	The authors report the findings of their study of over 400 stocks of public companies that announced at least 20 consecutive increases in their dividends during the period 1999 and 2009. With the assumption that the stock market learns to anticipate future dividend increases from current patterns, the study was designed to answer the question: How many increases does it take for the market to anticipate, and “price in,” the pattern of dividend increases? The authors report finding that abnormal returns around the first and second announcements of dividend increases are significant and positive, but are much less significant for the third and further increases. They also find that the size of the dividend increases tends to fall with more increases, and that the largest percentage dividend changes occur early in the sequence.	en_US
dc.publisher	Wiley	en_US
dc.relation.ispartof	Journal of Applied Corporate Finance	en_US
dc.relation.isbasedon	10.1111/jacf.12096	en_US
dc.title	Are Certain Dividend Increases Predictable? The Effect of Repeated Dividend Increases on Market Returns	en_US
dc.type	Journal Article
utslib.citation.volume	4	en_US
utslib.citation.volume	26	en_US
utslib.for	1502 Banking, Finance and Investment	en_US
utslib.for	1501 Accounting, Auditing and Accountability	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Finance Discipline
utslib.copyright.status	open_access
pubs.consider-herdc	true	en_US
pubs.issue	4	en_US
pubs.publication-status	Published	en_US
pubs.volume	26	en_US

Abstract:

The authors report the findings of their study of over 400 stocks of public companies that announced at least 20 consecutive increases in their dividends during the period 1999 and 2009. With the assumption that the stock market learns to anticipate future dividend increases from current patterns, the study was designed to answer the question: How many increases does it take for the market to anticipate, and “price in,” the pattern of dividend increases? The authors report finding that abnormal returns around the first and second announcements of dividend increases are significant and positive, but are much less significant for the third and further increases. They also find that the size of the dividend increases tends to fall with more increases, and that the largest percentage dividend changes occur early in the sequence.

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http://hdl.handle.net/10453/117375