FIRM SIZE AND DIVIDEND ANNOUNCEMENTS

In: The journal of financial research: the journal of the Southern Finance Association and the Southwestern Finance Association, Band 11, Heft 4, S. 295-302

Abstract

AbstractThis study documents an association between firm size and abnormal returns from the announcement of large dividend increases. Dividend announcements are examined only where there are no contemporaneous earnings announcements. The methodology controls for both the payout ratio of firms and the size of the dividend increase. Using means tests and analysis of variance, the findings indicate that the abnormal stock price reaction to a dividend increase is greater for small firms.