Can we predict dividend cuts?

Enrico Onali

Research output: Contribution to journalArticle

Abstract

I examine the predictability of dividend cuts based on the time interval between dividend announcement dates using a large dataset of US firms from 1971 to 2014. The longer the time interval between dividend announcements, the larger the probability of a cut in the dividend per share, consistent with the view that firms delay the release of bad news.
Original languageEnglish
Pages (from-to)71-76
Number of pages6
JournalEconomics Letters
Volume146
Early online date22 Jul 2016
DOIs
Publication statusPublished - Sep 2016

Bibliographical note

© 2016, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/

Keywords

  • dividend policy
  • dividend dates
  • signalling theory
  • asymmetric information
  • US capital market

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