IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-04904521.html
   My bibliography  Save this paper

Dividend Policy And Stock Acquisition Announcement Returns: A Test Of Asymmetric Information Theory
[Politique De Dividendes Et Rentabilité Des Annonces D'Acquisition D'Actions : Un Test De La Théorie De L'Information Asymétrique]

Author

Listed:
  • Aymen Turki

    (CleRMa - Clermont Recherche Management - ESC Clermont-Ferrand - École Supérieure de Commerce (ESC) - Clermont-Ferrand - UCA - Université Clermont Auvergne)

Abstract

This study examines 711 U.S. stock‐based acquisitions announced between 1985 and 2013 to analyze the relation between the acquirer's dividend policy and its stock returns when the acquisition is announced. Asymmetric information theory suggests that the lower the level of uncertainty about the acquirer's value, the smaller the acquirer's price drop when a stock‐based acquisition is announced. In support of this theoretical prediction, the current study identifies less negative acquirer stock returns around the announcement of stock acquisitions initiated by dividend‐paying firms compared with those initiated by non‐dividend‐paying firms.

Suggested Citation

  • Aymen Turki, 2019. "Dividend Policy And Stock Acquisition Announcement Returns: A Test Of Asymmetric Information Theory [Politique De Dividendes Et Rentabilité Des Annonces D'Acquisition D'Actions : Un Test De La Théo," Post-Print hal-04904521, HAL.
    • Handle: RePEc:hal:journl:hal-04904521
    DOI: 10.1111/jfir.12164
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:hal:journl:hal-04904521. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.