THE INFORMATION CONTENT OF DIVIDEND ANNOUNCEMENTS: EVIDENCE FROM FRONTIER MARKETS WITH VARYING TAX REGIMES IN JAMAICA AND TRINIDAD AND TOBAGO, 2001-2017
C. Justin Robinson and
BANGWAYO-SKEETE, Prosper, F.
Applied Econometrics and International Development, 2018, vol. 18, issue 2, 73-86
We investigate the information content of dividend announcements in two frontier stock markets with unique institutional contexts. One case imposes no taxes on either dividends or capital gains, while another only taxes dividends. When the dividend tax rate was 25%, in the later context, findings revealed a positive association between prices and dividend announcements but no relationship when it fell to 5%. The case without taxes showed no price reaction to constant dividends and dividend increase announcements, but a positive relation with dividend decreases. This positive relation uniquely suggests that tax differentials inadequately explain the information content of dividend announcements.
Keywords: Ownership concentration; Agency costs; Dividend announcements; Caribbean; Event study. (search for similar items in EconPapers)
JEL-codes: G10 G14 G15 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eaa:aeinde:v:18:y:2018:i:2_5
Ordering information: This journal article can be ordered from
Access Statistics for this article
More articles in Applied Econometrics and International Development from Euro-American Association of Economic Development
Bibliographic data for series maintained by M. Carmen Guisan ().