Dividend Omissions and Intraindustry Information Transfers
We examine potential information transfers from companies that announce dividend omissions to their industry rivals. Specifically, we examine the abnormal stock returns and abnormal earnings forecast revisions of rivals after a company makes a dividend‐omission announcement. Our results show negativ...
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| Veröffentlicht in: | The Journal of financial research 2003-03, Vol.26 (1), p.51-64 |
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| container_title | The Journal of financial research |
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| creator | Caton, Gary L. Goh, Jeremy Kohers, Ninon |
| description | We examine potential information transfers from companies that announce dividend omissions to their industry rivals. Specifically, we examine the abnormal stock returns and abnormal earnings forecast revisions of rivals after a company makes a dividend‐omission announcement. Our results show negative and significant abnormal stock returns and negative and significant abnormal forecast revisions for rival companies in response to the announcement, and a significant and positive relation between the two. We conclude that a dividend‐omission announcement transmits unfavorable information across the announcing company's industry that affects cash flow expectations and ultimately stock prices. |
| doi_str_mv | 10.1111/1475-6803.00044 |
| format | Article |
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We conclude that a dividend‐omission announcement transmits unfavorable information across the announcing company's industry that affects cash flow expectations and ultimately stock prices.</description><subject>Abnormal returns</subject><subject>Cash flow forecasting</subject><subject>Competition</subject><subject>Dividend policy</subject><subject>Dividends</subject><subject>Earnings forecasting</subject><subject>G35</subject><subject>Hypotheses</subject><subject>Prices</subject><subject>Rates of return</subject><subject>Revisions</subject><subject>Securities markets</subject><subject>Statistical analysis</subject><subject>Stock prices</subject><subject>Studies</subject><issn>0270-2592</issn><issn>1475-6803</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2003</creationdate><recordtype>article</recordtype><sourceid>X2L</sourceid><recordid>eNqFUE1PAjEUbIwmInr2Sryv9HO7eFOUDyVCDAZvTdl9jUXYxXZB99_bdQ1Xm0zb187MawehS4KvSRhdwqWI4gSza4wx50eodTg5Ri1MJY6o6NFTdOb9KlCIkKKFbu7t3maQZ53pxnpvi9x3dKjGeem0zbOdL10VKlO4jS7DdWfudO4NOH-OToxee7j4W9vodfAw74-iyXQ47t9OopRjwiMicA94ygTnMY-N1DHtZRkGDlKmgvc4GKKlMNTEjAGRUmcEkoyBXGohEmBtdNX4bl3xuQNfqlWxc3loqWj4BOUkIYHUbUipK7x3YNTW2Y12lSJY1fmoOg1Vp6F-8wmKUaNwsIX0QF-u9crkDrzaK6ZpHKaq3uAgZNoGkIBtgCAq5uq93AQr3lh92TVU_3VWj4PxS_OCqJFZX8L3Qabdh4olC5rF81A9vc1nd3Q2UQv2AzOljjk</recordid><startdate>200303</startdate><enddate>200303</enddate><creator>Caton, Gary L.</creator><creator>Goh, Jeremy</creator><creator>Kohers, Ninon</creator><general>Blackwell Publishing, Inc</general><general>Southern Finance Association</general><general>Wiley Subscription Services, Inc</general><scope>BSCLL</scope><scope>DKI</scope><scope>X2L</scope><scope>AAYXX</scope><scope>CITATION</scope></search><sort><creationdate>200303</creationdate><title>Dividend Omissions and Intraindustry Information Transfers</title><author>Caton, Gary L. ; Goh, Jeremy ; Kohers, Ninon</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c4014-1509e4c3544646f7a629dd0e4e77c5494ef1a75f2f633e177ad1e8d3e7ba558e3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2003</creationdate><topic>Abnormal returns</topic><topic>Cash flow forecasting</topic><topic>Competition</topic><topic>Dividend policy</topic><topic>Dividends</topic><topic>Earnings forecasting</topic><topic>G35</topic><topic>Hypotheses</topic><topic>Prices</topic><topic>Rates of return</topic><topic>Revisions</topic><topic>Securities markets</topic><topic>Statistical analysis</topic><topic>Stock prices</topic><topic>Studies</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Caton, Gary L.</creatorcontrib><creatorcontrib>Goh, Jeremy</creatorcontrib><creatorcontrib>Kohers, Ninon</creatorcontrib><collection>Istex</collection><collection>RePEc IDEAS</collection><collection>RePEc</collection><collection>CrossRef</collection><jtitle>The Journal of financial research</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Caton, Gary L.</au><au>Goh, Jeremy</au><au>Kohers, Ninon</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Dividend Omissions and Intraindustry Information Transfers</atitle><jtitle>The Journal of financial research</jtitle><date>2003-03</date><risdate>2003</risdate><volume>26</volume><issue>1</issue><spage>51</spage><epage>64</epage><pages>51-64</pages><issn>0270-2592</issn><eissn>1475-6803</eissn><abstract>We examine potential information transfers from companies that announce dividend omissions to their industry rivals. 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| fulltext | fulltext |
| identifier | ISSN: 0270-2592 |
| ispartof | The Journal of financial research, 2003-03, Vol.26 (1), p.51-64 |
| issn | 0270-2592 1475-6803 |
| language | eng |
| recordid | cdi_proquest_journals_215724181 |
| source | RePEc; Wiley Online Library Journals Frontfile Complete; EBSCOhost Business Source Complete |
| subjects | Abnormal returns Cash flow forecasting Competition Dividend policy Dividends Earnings forecasting G35 Hypotheses Prices Rates of return Revisions Securities markets Statistical analysis Stock prices Studies |
| title | Dividend Omissions and Intraindustry Information Transfers |
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