Earnings and Dividend Announcements: Are They Interactive? Evidence from the French Context
In this study, we examine abnormal stock returns surrounding contemporaneous earnings and dividend announcements in order to shed more light on the substantive relationship between these two financial signals. Our focus is to investigate the possible complementary or substitutive effect on a sample...
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| Format: | Article |
| Language: | English |
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EconJournals
2017-03-01
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| Series: | International Journal of Economics and Financial Issues |
| Subjects: | |
| Online Access: | https://dergipark.org.tr/tr/pub/ijefi/issue/32002/353207?publisher=http-www-cag-edu-tr-ilhan-ozturk |
| _version_ | 1828028334401912832 |
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| author | Mondher Kouki |
| author_facet | Mondher Kouki |
| author_sort | Mondher Kouki |
| collection | DOAJ |
| description | In this study, we examine abnormal stock returns surrounding contemporaneous earnings and dividend announcements in order to shed more light on the substantive relationship between these two financial signals. Our focus is to investigate the possible complementary or substitutive effect on a sample of French firms. The empirical evidence indicates that information content of dividends should be examined jointly with earnings announcement. The coefficients of all the dummy variables are uniformly negative and significant above the 1% confidence level. These results are inconsistent with those of Kane et al (1984). The significant coefficients support the corroboration hypothesis showing a negative interaction between earnings and dividends. This evidence suggests that investors evaluate the two announcements as two offsetting effects in order to meet any unexpected change in the firm’s financial policy. |
| first_indexed | 2024-04-10T13:51:50Z |
| format | Article |
| id | doaj.art-386288f6016348299b74ecb6e7c10170 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T13:51:50Z |
| publishDate | 2017-03-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-386288f6016348299b74ecb6e7c101702023-02-15T16:10:39ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382017-03-01713873931032Earnings and Dividend Announcements: Are They Interactive? Evidence from the French ContextMondher KoukiIn this study, we examine abnormal stock returns surrounding contemporaneous earnings and dividend announcements in order to shed more light on the substantive relationship between these two financial signals. Our focus is to investigate the possible complementary or substitutive effect on a sample of French firms. The empirical evidence indicates that information content of dividends should be examined jointly with earnings announcement. The coefficients of all the dummy variables are uniformly negative and significant above the 1% confidence level. These results are inconsistent with those of Kane et al (1984). The significant coefficients support the corroboration hypothesis showing a negative interaction between earnings and dividends. This evidence suggests that investors evaluate the two announcements as two offsetting effects in order to meet any unexpected change in the firm’s financial policy.https://dergipark.org.tr/tr/pub/ijefi/issue/32002/353207?publisher=http-www-cag-edu-tr-ilhan-ozturkearnings dividends event studies corroboration effect |
| spellingShingle | Mondher Kouki Earnings and Dividend Announcements: Are They Interactive? Evidence from the French Context International Journal of Economics and Financial Issues earnings dividends event studies corroboration effect |
| title | Earnings and Dividend Announcements: Are They Interactive? Evidence from the French Context |
| title_full | Earnings and Dividend Announcements: Are They Interactive? Evidence from the French Context |
| title_fullStr | Earnings and Dividend Announcements: Are They Interactive? Evidence from the French Context |
| title_full_unstemmed | Earnings and Dividend Announcements: Are They Interactive? Evidence from the French Context |
| title_short | Earnings and Dividend Announcements: Are They Interactive? Evidence from the French Context |
| title_sort | earnings and dividend announcements are they interactive evidence from the french context |
| topic | earnings dividends event studies corroboration effect |
| url | https://dergipark.org.tr/tr/pub/ijefi/issue/32002/353207?publisher=http-www-cag-edu-tr-ilhan-ozturk |
| work_keys_str_mv | AT mondherkouki earningsanddividendannouncementsaretheyinteractiveevidencefromthefrenchcontext |