Investor sentiment and the market reaction to dividend news: European evidence

Vieira, Elisabete

doi:10.1108/03074351111175100

Cited by 30 publications

(9 citation statements)

References 66 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This activity can also be referred to as "tunneling" (Johnson et al, 2000). Vieira (2011) and Moin et al (2019) support the understanding of expropriation and show that the level of dividend payments to family companies is lower than that of non-family companies. With a lower level of dividends in family firms, minority shareholders are prone to expropriation by the controlling family shareholders (Duygun et al, 2018).…”

Section: Family Ownership and Dividend Payoutmentioning

confidence: 76%

Dividend and leverage in Indonesian intergenerational family firms

Santos¹,

Rindra²,

Hidayat³

et al. 2020

JSB

View full text Add to dashboard Cite

This paper analyzes the relationships between family ownership and family generation toward dividend payout and leverage in publicly listed Indonesian firms from 2012 until 2016. The research contributes to explaining relationship between family generations toward dividend payouts and leverage in Indonesian family firms. Samples gathered by the purposive sampling method and random effect regression results show significant negative and positive relationships between family ownership and dividend and leverage, respectively. Family as the majority shareholder pays a lower dividend while employing additional supervision from creditors received as a result of using leverage as a control mechanism to mitigate agency problems. Research into family generation shows a significant positive relationship between descendantcontrolled firms and dividend payout, which is in line with the income needs perspective, but an insignificant relationship for leverage. Limitations regarding information force this study to exclude the percentage of ownership and use only judgment to classify family-owned firms and generational stage. With proven expropriation activities toward minority shareholders, family firms can increase transparency and improve corporate governance practice.

show abstract

Section: Family Ownership and Dividend Payoutmentioning

confidence: 76%

Dividend and leverage in Indonesian intergenerational family firms

Santos¹,

Rindra²,

Hidayat³

et al. 2020

JSB

View full text Add to dashboard Cite

show abstract

“…Furthermore, Lee et al (1991), Chen et al (1993), Chopra et al (1993), Lowry (2003) and Doukas and Milonas (2004) demonstrate that discounts (or premium) on closed‐end funds are as a useful factor in measuring the correlation between stock returns and investor sentiment. In the same vein, Baker and Wurgler (2004), Simões Vieira (2011) and Feldman (2010) find dividend premium as an adequate proxy of investor sentiment. They find that investors express sentiment towards average book‐to‐market ratio of companies paying dividends and also to those not paying.…”

Section: Contextualization Of the Studymentioning

confidence: 87%

Sentiment‐Apt investors and UK sector returns

et al. 2020

View full text Add to dashboard Cite

This paper examines the relationship between sentiment‐apt investors and UK stock returns at industry level over the period January 1988 to December 2017. Using two new sentiment proxies (laggards to leaders and growth opportunity index) for 10 discrete sector groupings, we provide novel evidence on how returns in the UK stock market react to the activities of sentiment‐disposed investors. First, using threshold nonlinear regression, we document a significant relationship between the laggards to leaders sentiment proxy and sectoral returns. Our findings reveal that aggregate returns in the sector are affected by activities of investors who embark on profit‐taking when there is an increase in the proportion of lagging to leading stocks beyond the threshold value. Secondly, when using the growth opportunity sentiment proxy, we report that the increase in growth above the growth threshold value has a significant impact on sector returns. This study further confirms significant impact of non‐threshold variables on sector groupings. Our findings are robust, having been subjected to a range of robustness checks.

show abstract

“…The aim of this paper is to compare the results of the theoretical and empirical literature on the determinants of the reaction of stock prices following the distribution of dividends (Elisabete, 2011). Financial theory shows that dividends-distributing firms fall into two distinct categories; firms affected positively by the act of distribution and others negatively affected due to the specific characteristics of different firms (especially ownership structure and capital concentration).…”

Section: Resultsmentioning

confidence: 99%

On the Determinants of Dividends’ Information Content

Said¹

2012

JMS

View full text Add to dashboard Cite

This paper examines the determinants of dividends' information content. We put an emphasis on the role of ownership structure in explaining the impact of dividends on shareholders' wealth. To this end, our study examined a sample of 136 French firms during the year 2007 to empirically validate our model. The empirical results show a negative reaction of stock prices to dividend announcement. This finding is consistent with the hypothesis of deterioration of growth opportunities. However, we have concluded that firms' characteristics significantly affect dividends' information content.

show abstract

Investor sentiment and the market reaction to dividend news: European evidence

Cited by 30 publications

References 66 publications

Dividend and leverage in Indonesian intergenerational family firms

Dividend and leverage in Indonesian intergenerational family firms

Sentiment‐Apt investors and UK sector returns

On the Determinants of Dividends’ Information Content

Contact Info

Product

Resources

About