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Underreaction to dividend reductions and omissions?
Journal article   Peer reviewed

Underreaction to dividend reductions and omissions?

Yi Liu, Samuel H. Szewczyk and Zaher Zantout
The Journal of finance (New York), v 63(2), pp 987-1020
01 Apr 2008

Abstract

Business & Economics Business, Finance Economics Social Sciences
Using a sample of 2,337 cash dividend reduction or omission announcements over the 1927 to 1999 period, this study reports significant negative post-announcement long-term abnormal returns, which last 1 year only. However, this long-term abnormal performance is driven by the post-earnings-announcement drift. After controlling for the earnings performance and the skewness of buy-and-hold abnormal returns, there is no compelling evidence of a post-dividend-reduction or post-dividend-omission price drift.

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Domestic collaboration
Web of Science research areas
Business, Finance
Economics
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