EconPapers    
Economics at your fingertips  
 

The Information Signaling Hypothesis of Dividends: Evidence from Cointegration and Causality Tests

Mbodja Mougoué and Ramesh Rao ()

Journal of Business Finance & Accounting, 2003, vol. 30, issue 3‐4, 441-478

Abstract: This paper uses cointegration and causality tests to study the temporal behavior of dividends and earnings at the individual firm level. We find that, for a sample of 143 non‐utility firms, approximately one‐fifth of the firms exhibits a temporal relationship between dividends and earnings that is consistent with the information signaling hypothesis of dividends. In the case of 72 utilities, about a third exhibit dividend policies that are consistent with the signaling notion of dividends. Further examination of firm characteristic differences between signaling and non‐signaling firms shows that, in the case of non‐utility firms, signaling firms tend to be smaller, have a lower growth rate of total assets, and have a higher leverage ratio. In the case of utilities, we find no major differences in firm characteristics between signaling and non‐signaling firms.

Date: 2003
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/1468-5957.t01-1-00004

Related works:
Journal Article: The Information Signaling Hypothesis of Dividends: Evidence from Cointegration and Causality Tests (2003) Downloads
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:jbfnac:v:30:y:2003:i:3-4:p:441-478

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0306-686X

Access Statistics for this article

Journal of Business Finance & Accounting is currently edited by P. F. Pope, A. W. Stark and M. Walker

More articles in Journal of Business Finance & Accounting from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2020-05-01
Handle: RePEc:bla:jbfnac:v:30:y:2003:i:3-4:p:441-478