Does managerial reluctance of dividend cuts signal future earnings?

Autor:	Cheng-Few Lee, James Juichia Lin
Rok vydání:	2020
Předmět:	Corporate finance Incentive Earnings Accounting Earnings persistence Dividend payout ratio Economics Dividend Earnings growth Monetary economics Proxy (statistics) General Business Management and Accounting Finance
Zdroj:	Review of Quantitative Finance and Accounting. 56:453-478
ISSN:	1573-7179 0924-865X
DOI:	10.1007/s11156-020-00899-5
Popis:	In this study, we develop alternative dividend stickiness measures as a proxy for managerial reluctance to cut dividends and investigate the information content of dividend stickiness. We find that firms with stickier dividend payout have greater earnings persistence, earnings growth, and pricing multiples on earnings. Further analysis shows that the signaling effect of dividend stickiness on future earnings is more pronounced for firms with less catering incentives to avoid dividend cuts. Our results suggest that dividend stickiness has incremental explanation over dividend payout for signaling future earnings.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::8dea2a8f90572dd583cfbc00842dc52a https://doi.org/10.1007/s11156-020-00899-5 Zobrazit plný text záznamu Full text from SpringerLink