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Dividend Smoothing and Signaling Under the Impact of the Global Financial Crisis: A Comparison of US and Southeast Asian Markets

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  • Xuan Nguyen
  • Quoc Trung Tran

Abstract

Under the impact of the global financial crisis, firms experience more external financial constraints and this is a good opportunity to investigate dividend smoothing and signaling behavior. Using data from the US market where the crisis originates and five Southeast Asian markets which are slightly affected by the crisis, we find that US firms pursue dividend smoothing model and they also follow signaling theory by increasing dividends in the post-crisis period to earn good reputation. However, Malaysia, Philippines and Indonesia following dividend smoothing model fail to pay more dividends in the post-crisis period. Thailand and Singapore increase dividend payments in the post-crisis period but they fail to pursue the dividend smoothing model significantly.

Suggested Citation

  • Xuan Nguyen & Quoc Trung Tran, 2016. "Dividend Smoothing and Signaling Under the Impact of the Global Financial Crisis: A Comparison of US and Southeast Asian Markets," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(11), pages 118-118, November.
    • Handle: RePEc:ibn:ijefaa:v:8:y:2016:i:11:p:118
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    1. Rahim Bah & Christophe Bonnet & Dominique Thevenin, 2012. "The Perception of Dividends by Managers: Do French CFOs differ from their North-American peers?," Grenoble Ecole de Management (Post-Print) halshs-00848947, HAL.
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    5. Rahim Bah & Christophe Bonnet & Dominique Thevenin, 2012. "The Perception of Dividends by Managers: Do French CFOs differ from their North-American peers?," Post-Print halshs-00848947, HAL.
    6. Merton H. Miller & Franco Modigliani, 1961. "Dividend Policy, Growth, and the Valuation of Shares," The Journal of Business, University of Chicago Press, vol. 34, pages 411-411.
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    Cited by:

    1. Vasiliki A. Basdekidou, 2017. "Seasoned Equity Offerings as Technical Market Anomalies: Long-Term Temporal Trading Functionalities," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(1), pages 96-105, January.

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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