Can we predict dividend cuts?

Enrico Onali

Economics Letters, 2016, vol. 146, issue C, 71-76

Abstract: I examine the predictability of dividend cuts based on the time interval between dividend announcement dates using a large dataset of US firms from 1971 to 2014. The longer the time interval between dividend announcements, the larger the probability of a cut in the dividend per share, consistent with the view that firms delay the release of bad news.

Keywords: Dividend policy; Dividend dates; Signalling theory; Asymmetric information; US capital market (search for similar items in EconPapers)
JEL-codes: G35 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:146:y:2016:i:c:p:71-76

DOI: 10.1016/j.econlet.2016.07.026

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