TY - JOUR
T1 - STOCK DIVIDENDS AS SIGNALS
AU - Woolridge, J. Randall
PY - 1983
Y1 - 1983
N2 - This study analyzes stock dividends as signals from managers. It is argued that in the presence of information asymmetries between managers and investors, stock dividends provide a relatively inexpensive and unambiguous signalling device. Based on an examination of the daily returns around 317 stock dividend announcements, it is concluded that these announcements are interpreted by investors as signals from managers. Further analysis also indicates that stock dividend size is positively related to announcement day returns.
AB - This study analyzes stock dividends as signals from managers. It is argued that in the presence of information asymmetries between managers and investors, stock dividends provide a relatively inexpensive and unambiguous signalling device. Based on an examination of the daily returns around 317 stock dividend announcements, it is concluded that these announcements are interpreted by investors as signals from managers. Further analysis also indicates that stock dividend size is positively related to announcement day returns.
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U2 - 10.1111/j.1475-6803.1983.tb00306.x
DO - 10.1111/j.1475-6803.1983.tb00306.x
M3 - Article
AN - SCOPUS:84986437307
SN - 0270-2592
VL - 6
SP - 1
EP - 12
JO - Journal of Financial Research
JF - Journal of Financial Research
IS - 1
ER -