An evaluation on the dividend signalling theory in Singapore stock market
Dividend signalling theory is one of the most debated theories in finance literature. This paper seeks to evaluate the dividend signalling theory in the Singapore Exchange (SGX), which is Asia’s most internationalised exchange. The data obtained includes dividend announcement events and financial da...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project (FYP) |
| Language: | English |
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Nanyang Technological University
2021
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10356/147456 |
| _version_ | 1811679907099443200 |
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| author | Koh, Nigel Jia Yuan Koh, Yun Yi Lee, Wen Jun |
| author2 | Wang Wenjie |
| author_facet | Wang Wenjie Koh, Nigel Jia Yuan Koh, Yun Yi Lee, Wen Jun |
| author_sort | Koh, Nigel Jia Yuan |
| collection | NTU |
| description | Dividend signalling theory is one of the most debated theories in finance literature. This paper seeks to evaluate the dividend signalling theory in the Singapore Exchange (SGX), which is Asia’s most internationalised exchange. The data obtained includes dividend announcement events and financial data of the listed companies. The specification of the model by Nissim and Ziv is adopted while assuming a linear relation between future earnings and past earnings levels and changes. However, with empirical evidence suggesting the relationship to be highly nonlinear, this paper also adopted the specification of the model by Fama and French. The results provide weak evidence for the dividend signalling theory to hold in SGX. This could be explained by the strong accounting conservatism principle and lesser asymmetric information between shareholders and listed companies in SGX. |
| first_indexed | 2024-10-01T03:16:36Z |
| format | Final Year Project (FYP) |
| id | ntu-10356/147456 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T03:16:36Z |
| publishDate | 2021 |
| publisher | Nanyang Technological University |
| record_format | dspace |
| spelling | ntu-10356/1474562023-03-05T15:42:36Z An evaluation on the dividend signalling theory in Singapore stock market Koh, Nigel Jia Yuan Koh, Yun Yi Lee, Wen Jun Wang Wenjie School of Social Sciences wang.wj@ntu.edu.sg Social sciences::Economic theory Dividend signalling theory is one of the most debated theories in finance literature. This paper seeks to evaluate the dividend signalling theory in the Singapore Exchange (SGX), which is Asia’s most internationalised exchange. The data obtained includes dividend announcement events and financial data of the listed companies. The specification of the model by Nissim and Ziv is adopted while assuming a linear relation between future earnings and past earnings levels and changes. However, with empirical evidence suggesting the relationship to be highly nonlinear, this paper also adopted the specification of the model by Fama and French. The results provide weak evidence for the dividend signalling theory to hold in SGX. This could be explained by the strong accounting conservatism principle and lesser asymmetric information between shareholders and listed companies in SGX. Bachelor of Arts in Economics 2021-04-02T12:23:43Z 2021-04-02T12:23:43Z 2021 Final Year Project (FYP) Koh, N. J. Y., Koh, Y. Y. & Lee, W. J. (2021). An evaluation on the dividend signalling theory in Singapore stock market. Final Year Project (FYP), Nanyang Technological University, Singapore. https://hdl.handle.net/10356/147456 https://hdl.handle.net/10356/147456 en application/pdf Nanyang Technological University |
| spellingShingle | Social sciences::Economic theory Koh, Nigel Jia Yuan Koh, Yun Yi Lee, Wen Jun An evaluation on the dividend signalling theory in Singapore stock market |
| title | An evaluation on the dividend signalling theory in Singapore stock market |
| title_full | An evaluation on the dividend signalling theory in Singapore stock market |
| title_fullStr | An evaluation on the dividend signalling theory in Singapore stock market |
| title_full_unstemmed | An evaluation on the dividend signalling theory in Singapore stock market |
| title_short | An evaluation on the dividend signalling theory in Singapore stock market |
| title_sort | evaluation on the dividend signalling theory in singapore stock market |
| topic | Social sciences::Economic theory |
| url | https://hdl.handle.net/10356/147456 |
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