search query: @author Michaely, R. / total: 11
reference: 4 / 11
| Author: | Benartzi, S. Michaely, R. Thaler, R. |
| Title: | Do changes in dividends signal the future or the past? |
| Journal: | Journal of Finance
1997 : JUL, VOL. 52:3, p. 1007-1034 |
| Index terms: | DIVIDENDS FUTURE EARNINGS COMPANIES |
| Language: | eng |
| Abstract: | Most firms pay dividends even though it is costly. The market reaction to dividend changes implies that dividends are good and more is better. Many theories assume or imply that dividends provide information to the market. This paper attempts to discover whether the information content of a dividend announcement has something to do with future earnings. No evidence was found to support the view that changes in dividends have information content about future earnings changes. While there is a strong past and concurrent link between earnings and dividend changes, the predictive value of changes in dividends seems minimal. As a conclusion it seems that Lintner's model of dividends is still the best description of the dividend setting process available. |
SCIMA