Evidence on the Irish stock market's reaction to dividend announcements

  • McCluskey T
  • Burton B
  • Power D
 et al. 
  • 16

    Readers

    Mendeley users who have this article in their library.
  • 20

    Citations

    Citations of this article.

Abstract

This study investigates the manner in which the Irish stock market responds to company announcements about dividend payments. In particular, the paper examines whether the predictions of the ‘signalling’ hypothesis hold or if more recent findings (which suggest that there is little value-relevant information contained in dividend changes) better characterize the Irish market. Data were obtained for a sample of 50 companies whose shares were traded on the Dublin Stock Exchange from 1987 to 2001. Abnormal returns were then calculated for the whole sample and for various dividend–earnings change combinations. The results suggest that dividend announcements are important for Irish investors, but earnings signals appear to have a stronger impact on equity values. [ABSTRACT FROM AUTHOR]

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document

Authors

  • T. McCluskey

  • B. M. Burton

  • D. M. Power

  • C. D. Sinclair

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free