The Impact of Stock Dividends Payments on Long-Term Corporate Performance In Taiwan
| Autor: | Chih-chau Huang, 黃致超 |
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| Rok vydání: | 2005 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 93 The stock dividends aren''t effective as a financial signal and have no positive material influence on firm''s value. However, prior studies in Taiwan find that firms distributing stock dividends experience poor long-term stock performance after the ex-dividend date. To explore the reasons for the poor long-term performance, we propose and examine the overreaction hypothesis and the earnings management hypothesis as the possible explanations. Our study period is between 1982 and 1996. Atfer eliminating the sample with the seasoned equity offerings, cash dividends, missing value on stock performance, and missing value on discretionary accruals, we have 666 samples for testing the overreaction hypothesis and 313 samples for testing the earnings management hypothesis. Consisting with prior studies, however, our empirical results show that it exists negative long-term abnormal stock returns after the ex-dividend date, and it exists positive long-term abnormal stock returns before the ex-date, too. Furthermore, the better is the long-term stock performance before the ex-dividend date, the worse it is after. Therefore, our study reveals that overreaction may be the explanation for the declining long-term stock performance after the ex-dividend date. Otherwise, we also find the operating performance in the following years is worse than it is before the ex-year. But we have no evidence to indicate that managers conduct earnings management by inflating discretionary accruals before the ex-dividend year. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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