Evidence on the Irish stock market's reaction to dividend announcements

• Autores: T. McCluskey, B.M. Burton, D.M. Power, C.D. Sinclair
• Localización: Applied financial economics, ISSN 0960-3107, Vol. 16, Nº. 8, 2006, págs. 617-628
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • This study investigates the manner in which the Irish stock market responds to company announcements about dividend payments. In particular, the paper examines whether the predictions of the �signalling� hypothesis hold or if more recent findings (which suggest that there is little value-relevant information contained in dividend changes) better characterize the Irish market. Data were obtained for a sample of 50 companies whose shares were traded on the Dublin Stock Exchange from 1987 to 2001. Abnormal returns were then calculated for the whole sample and for various dividend�earnings change combinations. The results suggest that dividend announcements are important for Irish investors, but earnings signals appear to have a stronger impact on equity values.