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Underwriting of Australian Dividend Reinvestment Plans

Author

Listed:
  • Mathew Abraham

    (Department of Applied Business, Whitireia Polytechnic, New Zealand)

  • James Lau

    (Department of Accounting and Corporate Governance, Macquarie University, Australia)

  • Alastair Marsden

    (University of Auckland, New Zealand)

Abstract

This study examines the decision to underwrite dividend reinvestment plans (DRPs) by Australian listed firms over the sample period 1995–2013. We find that the decision to underwrite a DRP for non-financial firms is negatively related to the level of franking credits attached to dividends, but positively related to the leverage of the firm and the discount for new shares issued in lieu of dividends. Non-financial and financial firms that are larger in size are more likely to underwrite their DRP. Lastly, underwriting of DRPs decreased with the onset of and subsequent to the height of the global financial crisis.

Suggested Citation

  • Mathew Abraham & James Lau & Alastair Marsden, 2019. "Underwriting of Australian Dividend Reinvestment Plans," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-26, September.
    • Handle: RePEc:wsi:rpbfmp:v:22:y:2019:i:03:n:s021909151950019x
    DOI: 10.1142/S021909151950019X
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    References listed on IDEAS

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    Cited by:

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