Dividend signaling: What can we learn from corporate bond responses?

Zhao, RL

Dividend signaling: What can we learn from corporate bond responses?

Zhao, RL

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Publication Type:: Journal Article
Citation:: Journal of Internet Banking and Commerce, 2016, 21 (1)
Issue Date:: 2016-04-01

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Field	Value	Language
dc.contributor.author	Zhao, RL https://orcid.org/0000-0002-1223-3333	en_US
dc.date.issued	2016-04-01	en_US
dc.identifier.citation	Journal of Internet Banking and Commerce, 2016, 21 (1)	en_US
dc.identifier.issn	1204-5357	en_US
dc.identifier.uri	http://hdl.handle.net/10453/123296
dc.description.abstract	© Ruoyun Lucy Zhao, 2016. The literature has reported significant abnormal returns associated with the announcements of dividend changes. Various hypotheses such as information signaling hypothesis, agency theory and wealth transfer hypothesis, have been suggested to explain the abnormal returns and volumes following the corporate stock dividend changes. The response of corporate bond, as a related security not subject to the immediate capitalization changes are used to provide evidence to help distinguish between the signaling and wealth transfer hypothesis. Corporate bonds have a significant decline in bond yields following dividend increase and a significant increase in bond yields following dividend decrease, supporting signaling hypothesis rather than wealth transfer effect.	en_US
dc.relation.ispartof	Journal of Internet Banking and Commerce	en_US
dc.title	Dividend signaling: What can we learn from corporate bond responses?	en_US
dc.type	Journal Article
utslib.citation.volume	1	en_US
utslib.citation.volume	21	en_US
utslib.for	1599 Other Commerce, Management, Tourism and Services	en_US
utslib.for	1402 Applied Economics	en_US
utslib.for	1502 Banking, Finance and Investment	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.issue	1	en_US
pubs.publication-status	Published	en_US
pubs.volume	21	en_US

Abstract:

© Ruoyun Lucy Zhao, 2016. The literature has reported significant abnormal returns associated with the announcements of dividend changes. Various hypotheses such as information signaling hypothesis, agency theory and wealth transfer hypothesis, have been suggested to explain the abnormal returns and volumes following the corporate stock dividend changes. The response of corporate bond, as a related security not subject to the immediate capitalization changes are used to provide evidence to help distinguish between the signaling and wealth transfer hypothesis. Corporate bonds have a significant decline in bond yields following dividend increase and a significant increase in bond yields following dividend decrease, supporting signaling hypothesis rather than wealth transfer effect.

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http://hdl.handle.net/10453/123296