A macro-analysis of financial decisions: An examination of special dividend announcements

Beladi, H, Chao, C and Hu, M 2016, 'A macro-analysis of financial decisions: An examination of special dividend announcements', International Review of Financial Analysis, vol. 48, pp. 162-181.


Document type: Journal Article
Collection: Journal Articles

Title A macro-analysis of financial decisions: An examination of special dividend announcements
Author(s) Beladi, H
Chao, C
Hu, M
Year 2016
Journal name International Review of Financial Analysis
Volume number 48
Start page 162
End page 181
Total pages 20
Publisher Elsevier BV
Abstract This paper investigates macro-level explanations for why firms pay special dividends. We find both the business cycle and market condition affect the propensity and abnormal returns of special dividends. Firms are more likely to announce special dividends in market or economic downturns than upturns. They tend to use additional cash for business growth in expansions and distribute it to reduce agency costs in contractions. The signaling effect of special dividends is stronger and companies with these announcements are better performers in recessions than in expansions. This research sheds light on and enhances the understanding of why firms disburse extra cash dividends at the aggregate level.
Subject Banking, Finance and Investment not elsewhere classified
Keyword(s) Business cycle
Market driven
Special dividends
DOI - identifier 10.1016/j.irfa.2016.09.015
Copyright notice © 2016 Elsevier Inc.
ISSN 1057-5219
Versions
Version Filter Type
Citation counts: TR Web of Science Citation Count  Cited 4 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 0 times in Scopus Article
Altmetric details:
Access Statistics: 24 Abstract Views  -  Detailed Statistics
Created: Thu, 23 May 2019, 08:44:00 EST by Catalyst Administrator
© 2014 RMIT Research Repository • Powered by Fez SoftwareContact us