Are all dividends created equal? Australian evidence using dividend-increase track records

Michayluk, D; Neuhauser, K; Walker, S

Are all dividends created equal? Australian evidence using dividend-increase track records

Michayluk, D

Neuhauser, K Walker, S

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Publication Type:: Journal Article
Citation:: Accounting and Finance, 2019, 59 (4), pp. 2621 - 2643
Issue Date:: 2019-12-01

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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	2019-12-01	en_US
dc.identifier.citation	Accounting and Finance, 2019, 59 (4), pp. 2621 - 2643	en_US
dc.identifier.issn	0810-5391	en_US
dc.identifier.uri	http://hdl.handle.net/10453/137616
dc.description.abstract	© 2017 AFAANZ Recent research indicates that the signal sent by a dividend change is more powerful for longer histories of unchanged dividends. We study the dividend history of Australian firms to investigate whether the signalling power of a dividend increase varies with the frequency of repetition. We find that the first three consecutive dividend increases are associated with significantly positive abnormal returns, and subsequent increases are generally not significant, even after controlling for the interaction effect with the simultaneously announced earnings information. Our results support the hypothesis that repeating a dividend increase eventually leads to a reputation for further increases and weakens the value of subsequent increases as a means of disseminating management's private information.	en_US
dc.relation.ispartof	Accounting and Finance	en_US
dc.relation.isbasedon	10.1111/acfi.12303	en_US
dc.rights	info:eu-repo/semantics/closedAccess
dc.subject.classification	Accounting	en_US
dc.title	Are all dividends created equal? Australian evidence using dividend-increase track records	en_US
dc.type	Journal Article
utslib.citation.volume	4	en_US
utslib.citation.volume	59	en_US
utslib.for	1501 Accounting, Auditing and Accountability	en_US
utslib.for	1502 Banking, Finance and Investment	en_US
utslib.for	1402 Applied Economics	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	closed_access	*
pubs.issue	4	en_US
pubs.publication-status	Published	en_US
pubs.volume	59	en_US

Abstract:

© 2017 AFAANZ Recent research indicates that the signal sent by a dividend change is more powerful for longer histories of unchanged dividends. We study the dividend history of Australian firms to investigate whether the signalling power of a dividend increase varies with the frequency of repetition. We find that the first three consecutive dividend increases are associated with significantly positive abnormal returns, and subsequent increases are generally not significant, even after controlling for the interaction effect with the simultaneously announced earnings information. Our results support the hypothesis that repeating a dividend increase eventually leads to a reputation for further increases and weakens the value of subsequent increases as a means of disseminating management's private information.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/137616