The Impact Of Dividend Payments On Shareholders Wealth: Evidence From The Vector Error Correction Model
2013 ◽
Vol 12
(11)
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pp. 1451
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Keyword(s):
Long Run
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To date, a vast body of research has been established on dividend policy. However, little research has been done on the impact of dividend payments on shareholders wealth while considering the short- and long-run effects. This study is based on a sample of 46 companies listed on the Johannesburg Securities Exchange (JSE) for the period 1995 to 2010. The Vector Error Correction Model (VECM) was used to describe the short-run and long-run dynamics or the adjustment of the co-integrated variables toward their equilibrium values. Results indicate that in the long run, dividend yield is positively related to market price per share, while earnings per share do not have a significant impact on the market price per share.
2020 ◽
pp. 26-36
2020 ◽
Vol 9
(6)
◽
pp. 382
2018 ◽
Vol 2
(2)
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pp. 156-175
2020 ◽
Vol 11
(2)
◽
pp. 329-345
2018 ◽
Vol 21
(2)
◽
pp. 19-35
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