The Linkages between Dividends and Earnings

Gerard T Olson and P Douglas McCann

The Financial Review, 1994, vol. 29, issue 1, 1-22

Abstract: The purpose of this paper is to empirically test the linkages between dividends and earnings. Using the Granger test of statistical causality, it is found that some firms use dividends for signaling, some follow a residual policy, and some firms simultaneously signal and follow a residual policy. Segmenting firms according to dividend policy, the results indicate that firms that follow a residual or signaling dividend policy tend to have a higher growth in asset turnover, but a lower growth in revenues. Signaling firms also tend to be smaller, have higher variability in revenues, and use less debt through time. Copyright 1994 by MIT Press.

Date: 1994
References: Add references at CitEc
Citations: View citations in EconPapers (4)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:finrev:v:29:y:1994:i:1:p:1-22

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0732-8516

Access Statistics for this article

The Financial Review is currently edited by Cynthia J. Campbell and Arnold R. Cowan

More articles in The Financial Review from Eastern Finance Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().