Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/22426
Title: Information effects of dividends : evidence from the Hong Kong market
Authors: Cheng, LTW 
Fung, HG
Leung, TY
Keywords: Dividends
Earnings
Information effects
Price reaction
Issue Date: 2007
Source: Review of quantitative finance and accounting, 2007, v. 28, no. 1, p. 23-54 How to cite?
Journal: Review of Quantitative Finance and Accounting 
Abstract: The literature has suggested that earnings and earnings forecasts provide stronger signals than dividends about future performance of a firm. We test the information effects of simultaneous announcement of earnings and dividends in the Hong Kong market, distinguished by three interesting features (concentrated family-shareholdings, low corporate transparency, and no tax on dividends). Our results show significant share price reactions to unexpected earnings and dividend changes, but dividends appear to play a dominant role over earnings in pricing, a result contrary to findings in the literature. The signaling hypothesis works primarily for firms with earning increases, while the maturity hypothesis works mainly for firms with earnings declines.
URI: http://hdl.handle.net/10397/22426
ISSN: 0924-865X
DOI: 10.1007/s11156-006-0002-y
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