Financial Management articles from September 1998

Financial Management archives from September 1998

The relative importance of competition and contagion in intra-industry information transfers: an investigation of dividend announcements.(Special Issue: Dividends)(includes appendix)
September 22, 1998... A variety of corporate events and announcements elicit stock price reactions for industry rival firms as well as for the firm directly affected by the events. For example, research shows that earnings information disclosed by one firm in an...

Information associated with dividend initiations: firm-specific or industry-wide?(Special Issue: Dividends)
September 22, 1998... Unexpected changes in dividend policy are associated with stock price reactions in the same direction (see Aharony and Swary, 1980; and Kalay and Lowenstein, 1985). A widely accepted explanation for this well-established empirical finding,...

The information content of dividend initiations: additional evidence.(Special Issue: Dividends)
September 22, 1998... We investigate changes in firm risk following the initiation of cash dividend payments. The original idea behind the information content of dividends, attributed to Lintner (1956), is that managers only increase dividends when they believe that...

Dividend initiations and earnings surprises.(Special Issue: Dividends)
September 22, 1998... In an economy that levies taxes on investment income, dividends are clearly a disadvantageous means of transferring wealth to shareholders. To justify dividend costs, two explanations are usually given: dividends are used to solve agency...

Do firms use dividends to signal large future cash flow increases?(Special Issue: Dividends)
September 22, 1998... A substantial theoretical literature, including Lintner (1956), Bhattacharya (1979), Miller and Rock (1985) and John and Williams (1985), suggests that corporate dividend policy is designed to reveal earnings prospects to investors. For...

Who trades around the ex-dividend day? Evidence from NYSE audit file data.(Special Issue: Dividends)(New York Stock Exchange)
September 22, 1998... Our paper analyzes the identity of traders around ex-dividend days, using audit file data from the New York Stock Exchange (NYSE)TORQ database to distinguish between short-term trading by securities dealers and short-term corporate...

Dividend policy determinants: an investigation of the influences of stakeholder theory.(Special Issue: Dividends)
September 22, 1998... There is considerable debate on how dividend policy affects firm value. Some researchers believe that dividends increase shareholder wealth (Gordon, 1959), others believe that dividends are irrelevant (Miller and Scholes, 1978), and still...

Premium debt swaps: the best of both worlds?
September 22, 1998... January 1998 saw the introduction of a new type of debt-for-debt exchange - par-for-par swaps involving bonds selling at a substantial premium. Using this approach, two major transactions took place: the $700 million United Parcel Service 8...

Why targeted investing does not make sense!
September 22, 1998... Watson (1994) argues that defined benefit pension plans should be allowed to implement targeted investing in order to generate collateral benefits for the plan participants. That is, some investment opportunities available to a pension plan may...