Will Firms Manipulate Stock Price by Declaring Cash Dividends?
Date Issued
2006
Date
2006
Author(s)
Chang, Shu-Ting
DOI
en-US
Abstract
This article examines the relation between dividend and stock offering decisions. Managers rely on dividends to obtain a higher price in stock offering but contributed to the more severe price reversion after issuing than others. The evidence shows that the dividend policy of issuing firms differs considerably from that of nonissuing firms. In simple terms, issuing firms are more likely to declare dividends than nonissuing firms. Moreover, the data detected obvious benefits in the data from linking dividend and stock offering decisions. In particular, dividend decisions appear to lead to positive announcement effects. Amid those suspected firms which have manipulated the stock price, only firms increasing cash dividends prior to the stock offering have succeeded in their inferior achievements accounted for more serious reversed price reactions.
Subjects
現金股利
發行新股
操縱股價
Dividends
Stock Offering
Manipulate
Type
thesis
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