Presented by

Dr Janet Payne
Associate Professor of Finance
Faculty of Business
Bond University

Abstract
We track the dividend initiation decisions of a sample of 6,588 firms that went public during the period 1979-2005 and find that 873 of them initiated dividends. Our primary objective is to determine whether information signaling can explain the dividend initiation (DI) decision. We find that variables suggested by the dividend-signaling models of John and Williams (1985) and Allen, Bernardo, and Welch (2000) are significant determinants of the DI decision and the associated announcement-period stock price effect. We also find support for the residual, agency, tax, clientele, transactions costs, catering, and life cycle explanations of dividend policy.

When

30 March 2012
12:00pm – 1:00pm

Where

University Centre, BLD (06_03_23)
Bond University

Contact Information

Catherine Smith
Database and Research Support
Faculty of Business
Telephone: +61 7 5595 55721