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Efficient Market Tests of the Informational Content of Dividend Announcements: Critique and Extension

Published online by Cambridge University Press:  06 April 2009

Extract

In recent years a major controversy has formed in the finance literature regarding the empirical evidence of the informational content of dividends. Despite considerable support for the position of dividend nontriviality by various studies, the work by Watts [13] represents a formidable challenge. Because of the close proximity of the firm's earnings and dividend announcement dates, the major issue of the dispute has centered on the identification and control of contemporaneous earnings information. In an attempt to settle this controversy, the present study evaluates and extends Watts' methodology.

Type
Research Article
Copyright
Copyright © School of Business Administration, University of Washington 1981

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References

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