The Effect of Corporate Dividends on Different Sequences of Seasoned Equity Offerings
Date Issued
2007
Date
2007
Author(s)
Cheng, Yen-Ting
DOI
en-US
Abstract
We investigate whether managers declare dividends to support their stock price around the first or second time of equity issues. For firms have already conducted multiple issues, there is no incentive to do so due to the low level of information asymmetry. The evidence shows although firms tend to increase dividends prior to earlier equity offerings, dividend increase firms do not exhibit better announcement effects. Thus, we can not conclude firms are intended to do so. Dividend signaling effects do not have more significant impact on earlier issues. And later issues conducted by issuing firms with unchanged dividends outperform other subsample. There is no relation between special dividends and equity offering announcement returns. The evidence for firms to time the equity offerings with dividend announcements is weak and do not support the dividend signaling hypothesis.
Subjects
現金增資
次序
股利
seasoned equity offerings
sequence
dividend
Type
thesis
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ntu-96-R94723040-1.pdf
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