IDEAS home Printed from https://ideas.repec.org/a/bla/jbfnac/v28y2001i7-8p963-977.html
   My bibliography  Save this article

The Earnings Information Content of Dividend Initiations and Omissions

Author

Listed:
  • Shih‐Jen Kathy Ho
  • Chunchi Wu

Abstract

Previous studies have found that dividend initiations and omissions convey important information about subsequent earnings changes. However, this finding may be subject to a sample survival bias. We find that survivorship does not affect the positive relation between dividend changes and past earnings changes. Also, we find dividend omitting firms are able to generate significantly positive earnings one to two years after the omission. However, contrary to previous findings, firms' earnings are not significantly increased following the dividend initiation. The results suggest that survivorship tends to bias inference toward finding that dividends signal future earnings.

Suggested Citation

  • Shih‐Jen Kathy Ho & Chunchi Wu, 2001. "The Earnings Information Content of Dividend Initiations and Omissions," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 28(7‐8), pages 963-977, September.
    • Handle: RePEc:bla:jbfnac:v:28:y:2001:i:7-8:p:963-977
    DOI: 10.1111/1468-5957.00400
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1468-5957.00400
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1468-5957.00400?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abdullah AlGhazali & Khamis Hamed Al-Yahyaee & Richard Fairchild & Yilmaz Guney, 2024. "What do dividend changes reveal? Theory and evidence from a unique environment," Review of Quantitative Finance and Accounting, Springer, vol. 62(2), pages 499-552, February.
    2. Kumar, Satish, 2017. "New evidence on stock market reaction to dividend announcements in India," Research in International Business and Finance, Elsevier, vol. 39(PA), pages 327-337.
    3. Ed-Dafali, Slimane & Patel, Ritesh & Iqbal, Najaf, 2023. "A bibliometric review of dividend policy literature," Research in International Business and Finance, Elsevier, vol. 65(C).
    4. Fakhrul Hasan & Umar Nawaz Kayani & Tonmoy Choudhury, 2023. "Behavioral Risk Preferences and Dividend Changes: Exploring the Linkages with Prospect Theory Through Empirical Analysis," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 24(4), pages 517-535, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jbfnac:v:28:y:2001:i:7-8:p:963-977. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0306-686X .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.