Dividend cuts and predictability

2017 ◽  
Vol 42 (2) ◽  
pp. 249-267 ◽  
Author(s):  
Ruey-Shii Chen ◽  
Tai-Wei Zhang
Keyword(s):  
Dividend Cuts

scholarly journals Capital Structure Shifts And Recession: An Empirical Investigation

2011 ◽  
Vol 9 (12) ◽  
pp. 13 ◽  
Author(s):  
Rakesh Duggal ◽  
Michael Craig Budden
Keyword(s):  
Capital Structure ◽  
Empirical Investigation ◽  
Font Size ◽  
Financial Firms ◽  
Dividend Cuts

<span style="font-family: Times New Roman; font-size: small;"> </span><p style="margin: 0in 0.5in 0pt; text-align: justify; mso-pagination: none;" class="MsoNormal"><span style="color: black; font-size: 10pt; mso-themecolor: text1;"><span style="font-family: Times New Roman;">This study investigates whether the 2007-2009 recession impacted the capital structures of U.S. corporations.<span style="mso-spacerun: yes;"> </span>Investigating all non-financial firms in the S&amp;P 500 Index, the study finds that by boosting their book equity via dividend cuts and some debt reductions, firms kept book leverage unchanged.</span></span></p><span style="font-family: Times New Roman; font-size: small;"> </span>

Interim dividend cuts and omissions in the UK

1996 ◽  
Vol 2 (1) ◽  
pp. 23-38 ◽  
Author(s):  
Balasingham Balachandran ◽  
John Cadle ◽  
Michael Theobald
Keyword(s):  
The Uk ◽  
Dividend Cuts

scholarly journals Can we predict dividend cuts?

2016 ◽  
Vol 146 ◽  
pp. 71-76
Author(s):  
Enrico Onali
Keyword(s):  
Dividend Cuts

scholarly journals Transaction Costs And The Information Content Of Dividend Cuts

2011 ◽  
Vol 6 (2) ◽  
pp. 32
Author(s):  
Albert R. Eddy ◽  
Joel N. Morse
Keyword(s):  
Transaction Costs ◽  
Equilibrium Price ◽  
Common Stock ◽  
Full Information ◽  
Simultaneous Presence ◽  
Price Reaction ◽  
Dividend Signaling ◽  
Informed Traders ◽  
Security Price ◽  
Dividend Cuts

This paper models security price reaction to dividend cut announcements in the presence of informed traders and transaction costs. A transaction costs barrier prevents the attainment of a full information equilibrium price prior to the announcement of the cut. An empirical study of transaction costs and price reaction for both common stock and call options indicates that transaction costs may constitute a significant portion of security price reactions to cut announcements. Interestingly, the results of this interpretation allow for the simultaneous presence of dividend signaling and an informed subset of investors.

Corporate Payout Policy and Credit Risk: Evidence from Credit Default Swap Markets

2020 ◽  
Author(s):  
Chengzhu Sun ◽  
Shujing Wang ◽  
Chu Zhang
Keyword(s):  
Credit Risk ◽  
Financial Distress ◽  
Credit Default Swap ◽  
Payout Policy ◽  
Share Repurchases ◽  
Wealth Transfer ◽  
Financial Firms ◽  
Credit Default ◽  
Default Swap ◽  
Dividend Cuts

We examine whether and how payout policy affects credit risk using evidence from the credit default swap (CDS) market. CDS spreads increase substantially in response to announcements of dividend cuts, especially during recessions and among firms experiencing financial distress. CDS spreads also react more strongly to permanent and less anticipated dividend cuts. The size of the CDS reaction is more pronounced for financial firms, which are inherently more opaque. In contrast, CDS spreads react weakly to dividend raises and share repurchases. The results show that the information effect of dividend changes dominates the wealth-transfer effect. This paper was accepted by Kay Giesecke, finance.

REIT Spreads Around Dividend Cuts and Suspensions During the Financial Crisis

2020 ◽  
Vol 26 (1) ◽  
pp. 101-109
Author(s):  
Olgun F. Sahin ◽  
Pattarake Sarajoti ◽  
Alireza Nasseh
Keyword(s):  
Financial Crisis ◽  
Dividend Cuts
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