Advanced Search
MyIDEAS: Login to save this article or follow this journal

Empirical Analysis on the Dividend Life-Cycle Theory: Evidence from Japan

Contents:

Author Info

  • Hiroyuki Ishikawa

    (Graduate School of Business, Osaka City University, Japan)

Registered author(s):

    Abstract

    This paper aims to clarify a characteristic of the dividend policies of Japanese firms by verifying the dividend life-cycle theory. The analysis revealed that in Japan, growing firms choose further dividend increases compared to mature firms, and that such dividend increases by the growing firms are appreciated by the market more than those by the mature firms. These findings are not consistent with the prediction by the dividend life-cycle theory, but can be interpreted using the concept of corroboration effect.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.rieb.kobe-u.ac.jp/tjar/article/vol1/pdf/3.Ishikawa.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by Research Institute for Economics & Business Administration, Kobe University in its journal The Japanese Accounting Review.

    Volume (Year): 1 (2011)
    Issue (Month): (December)
    Pages: 39-60

    as in new window
    Handle: RePEc:kob:tjrevi:dec2011:v:1:p:30-60

    Contact details of provider:
    Postal: Rokkodai 2-1, Nada, Kobe 657-8501
    Phone: +81-(0)78 803 7036
    Fax: 81-78-803-7059
    Web page: http://www.rieb.kobe-u.ac.jp/
    More information through EDIRC

    Related research

    Keywords: Dividend Life-Cycle Theory; Dividend Policy; Corroboration Effect; Signaling; Earnings Predictability;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Collins, Daniel W. & Maydew, Edward L. & Weiss, Ira S., 1997. "Changes in the value-relevance of earnings and book values over the past forty years," Journal of Accounting and Economics, Elsevier, Elsevier, vol. 24(1), pages 39-67, December.
    2. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, Econometric Society, vol. 48(4), pages 817-38, May.
    3. Pettit, R Richardson, 1972. "Dividend Announcements, Security Performance, and Capital Market Efficiency," Journal of Finance, American Finance Association, American Finance Association, vol. 27(5), pages 993-1007, December.
    4. Fama, Eugene F. & French, Kenneth R., 2001. "Disappearing dividends: changing firm characteristics or lower propensity to pay?," Journal of Financial Economics, Elsevier, Elsevier, vol. 60(1), pages 3-43, April.
    5. Jensen, Michael C, 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers," American Economic Review, American Economic Association, American Economic Association, vol. 76(2), pages 323-29, May.
    6. Kane, Alex & Lee, Young Ki & Marcus, Alan, 1984. " Earnings and Dividend Announcements: Is There a Corroboration Effect?," Journal of Finance, American Finance Association, American Finance Association, vol. 39(4), pages 1091-99, September.
    7. Louis T. W. Cheng & T. Y. Leung, 2006. "Revisiting the corroboration effects of earnings and dividend announcements," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, Accounting and Finance Association of Australia and New Zealand, vol. 46(2), pages 221-241.
    8. Brav, Alon & Graham, John R. & Harvey, Campbell R. & Michaely, Roni, 2005. "Payout policy in the 21st century," Journal of Financial Economics, Elsevier, Elsevier, vol. 77(3), pages 483-527, September.
    9. Lie, Erik, 2000. "Excess Funds and Agency Problems: An Empirical Study of Incremental Cash Disbursements," Review of Financial Studies, Society for Financial Studies, Society for Financial Studies, vol. 13(1), pages 219-47.
    10. Brandon Julio & David L. Ikenberry, 2004. "Reappearing Dividends," Journal of Applied Corporate Finance, Morgan Stanley, Morgan Stanley, vol. 16(4), pages 89-100.
    11. DeAngelo, Harry & DeAngelo, Linda & Stulz, Rene M., 2006. "Dividend policy and the earned/contributed capital mix: a test of the life-cycle theory," Journal of Financial Economics, Elsevier, Elsevier, vol. 81(2), pages 227-254, August.
    12. DeAngelo, Harry & DeAngelo, Linda & Skinner, Douglas J., 2000. "Special dividends and the evolution of dividend signaling," Journal of Financial Economics, Elsevier, Elsevier, vol. 57(3), pages 309-354, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:kob:tjrevi:dec2011:v:1:p:30-60. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (TJAR Editorial Office).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.