File Download
There are no files associated with this item.
Links for fulltext
(May Require Subscription)
- Publisher Website: 10.1086/431438
- Scopus: eid_2-s2.0-17544364418
- WOS: WOS:000232977700002
- Find via
Supplementary
- Citations:
- Appears in Collections:
Article: Dividend changes do not signal changes in future profitability
Title | Dividend changes do not signal changes in future profitability |
---|---|
Authors | |
Issue Date | 2005 |
Citation | Journal of Business, 2005, v. 78, n. 5, p. 1659-1682 How to Cite? |
Abstract | One of the most important predictions of the dividend-signaling hypothesis is that dividend changes are positively correlated with future changes in profitability and earnings. Contrary to this prediction, we show that, after controlling for the well-known nonlinear patterns in the behavior of earnings, dividend changes contain no information about future earnings changes. We also show that dividend changes are negatively correlated with future changes in profitability (return on assets). Finally, we investigate whether including dividend changes improves out-of-sample earnings forecasts. We find that models that include dividend changes do not outperform those that do not include dividend changes. © 2005 by The University of Chicago. All rights reserved. |
Persistent Identifier | http://hdl.handle.net/10722/326035 |
ISSN | |
ISI Accession Number ID |
DC Field | Value | Language |
---|---|---|
dc.contributor.author | Grullon, Gustave | - |
dc.contributor.author | Michaely, Roni | - |
dc.contributor.author | Benartzi, Shlomo | - |
dc.contributor.author | Thaler, Richard H. | - |
dc.date.accessioned | 2023-03-09T09:57:33Z | - |
dc.date.available | 2023-03-09T09:57:33Z | - |
dc.date.issued | 2005 | - |
dc.identifier.citation | Journal of Business, 2005, v. 78, n. 5, p. 1659-1682 | - |
dc.identifier.issn | 0021-9398 | - |
dc.identifier.uri | http://hdl.handle.net/10722/326035 | - |
dc.description.abstract | One of the most important predictions of the dividend-signaling hypothesis is that dividend changes are positively correlated with future changes in profitability and earnings. Contrary to this prediction, we show that, after controlling for the well-known nonlinear patterns in the behavior of earnings, dividend changes contain no information about future earnings changes. We also show that dividend changes are negatively correlated with future changes in profitability (return on assets). Finally, we investigate whether including dividend changes improves out-of-sample earnings forecasts. We find that models that include dividend changes do not outperform those that do not include dividend changes. © 2005 by The University of Chicago. All rights reserved. | - |
dc.language | eng | - |
dc.relation.ispartof | Journal of Business | - |
dc.title | Dividend changes do not signal changes in future profitability | - |
dc.type | Article | - |
dc.description.nature | link_to_subscribed_fulltext | - |
dc.identifier.doi | 10.1086/431438 | - |
dc.identifier.scopus | eid_2-s2.0-17544364418 | - |
dc.identifier.volume | 78 | - |
dc.identifier.issue | 5 | - |
dc.identifier.spage | 1659 | - |
dc.identifier.epage | 1682 | - |
dc.identifier.isi | WOS:000232977700002 | - |