Dividends and the Value of the Firm: Evidence from the Australian Equity Market

Ray Ball (), Philip Brown, Frank J. Finn and R. R. Officer
Additional contact information
Philip Brown: Australian Graduate School of Management, University of New South Wales.
Frank J. Finn: Department of Commerce, University of Queensland.
R. R. Officer: Department of Accounting and Finance, Monash University.

Australian Journal of Management, 1979, vol. 4, issue 1, 13-26

Abstract: A version of the Black and Scholes dividend yield experiment is conducted, with a view to determining whether there exists a preference for dividends versus capital gains. Using data from the 1960s the experiment reveals a relatively large relationship between dividend yields and risk-adjusted share returns, in the year subsequent to the payment of the dividend yields. The observed dividend effect is too large to be explained by major hypotheses concerning market-wide preferences for or against dividends.

Keywords: ANOMALY; ASSET PRICING; DIVIDEND POLICY; EFFICIENCY; STOCK MARKET PRICES; TAXES (search for similar items in EconPapers)
Date: 1979
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/031289627900400102 (text/html)

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:sae:ausman:v:4:y:1979:i:1:p:13-26

DOI: 10.1177/031289627900400102

Access Statistics for this article

More articles in Australian Journal of Management from Australian School of Business
Bibliographic data for series maintained by SAGE Publications ().