Access the full text.
Sign up today, get DeepDyve free for 14 days.
Loading next page...
/lp/wiley/insider-trading-around-dividend-announcements-theory-and-evidence-ExswbrLpCz
References (36)
-
S. Bhattacharya (1979)
Imperfect Information, Dividend Policy, and "The Bird in the Hand" FallacyThe Bell Journal of Economics, 10
-
Kose John, Banikanta Mishra (1990)
Information Content of Insider Trading Around Corporate Announcements: The Case of Capital ExpendituresJournal of Finance, 45
-
M. Harris, Arthur Raviv (1985)
A Sequential Signalling Model of Convertible Debt Call PolicyJournal of Finance, 40
-
Joseph Finnerty (1976)
Insiders' Activity and Inside Information: A Multivariate AnalysisJournal of Financial and Quantitative Analysis, 11
-
R. Pettit (1972)
DIVIDEND ANNOUNCEMENTS, SECURITY PERFORMANCE, AND CAPITAL MARKET EFFICIENCYJournal of Finance, 27
-
Merton Miller, Kevin Rock (1985)
Dividend Policy under Asymmetric InformationJournal of Finance, 40
-
H. Seyhun (1988)
The Information Content of Aggregate Insider TradingThe Journal of Business, 61
-
H. Seyhun (1988)
The January Effect and Aggregate Insider TradingJournal of Finance, 43
-
René Stulz (1988)
Managerial control of voting rights: Financing policies and the market for corporate controlJournal of Financial Economics, 20
-
P. Asquith, D. Mullins (1986)
Equity issues and offering dilutionJournal of Financial Economics, 15
-
M. Hirschey, J. Zaima (1989)
Insider Trading, Ownership Structure, and the Market Assessment of Corporate Sell-OffsJournal of Finance, 44
-
J. Aharony, Itzhak Swary (1980)
Quarterly Dividend and Earnings Announcements and Stockholders' Returns: An Empirical AnalysisJournal of Finance, 35
-
R. Ambarish, Kose John, Joseph Williams (1987)
Efficient Signalling with Dividends and InvestmentsJournal of Finance, 42
-
Kose John, Joseph Williams (1983)
Dividends, Dilution, and Taxes: A Signalling EquilibriumJournal of Finance, 40
-
J. Lorie, Victor Niederhoffer (1968)
Predictive and Statistical Properties of Insider TradingThe Journal of Law and Economics, 11
-
Larry Dann (1981)
Common stock repurchases : An analysis of returns to bondholders and stockholdersJournal of Financial Economics, 9
-
Riley Riley (1979)
Informational equilibriumEconometrica, 47
-
R. Morck, Andrei Shleifer, Robert Vishny (1988)
Management Ownership and Market Valuation: An Empirical AnalysisJournal of Financial Economics, 20
-
In-Koo Cho, David Kreps (1987)
Signaling Games and Stable EquilibriaQuarterly Journal of Economics, 102
-
Michael Rozeff, Mir Zaman (1988)
Market Efficiency and Insider Trading: New EvidenceFEN: Behavioral Finance (Topic)
-
H. Leland., David Pyle. (1977)
INFORMATIONAL ASYMMETRIES, FINANCIAL STRUCTURE, AND FINANCIAL INTERMEDIATIONJournal of Finance, 32
-
Paul Milgrom, John Roberts (1986)
Price and Advertising Signals of Product QualityJournal of Political Economy, 94
-
Theo Vermaelen (1981)
Common stock repurchases and market signalling: An empirical study☆Journal of Financial Economics, 9
-
J. Jaffe (1974)
Special Information and Insider TradingThe Journal of Business, 47
-
J. Jaffe (1974)
The effect of regulation changes on insider tradingThe Bell Journal of Economics, 5
-
Masulis Masulis, Korwar Korwar (1986)
Seasoned equity offerings: An empirical investigationJournal of Financial Economics, 15
-
Dan Givoly, Dan Palmon (1985)
Insider Trading and the Exploitation of Inside Information: Some Empirical EvidenceThe Journal of Business, 58
-
M. Spence (1973)
Job Market SignalingQuarterly Journal of Economics, 87
-
Larry Lang, R. Litzenberger (1989)
Dividend announcements: Cash flow signalling vs. free cash flow hypothesis?Journal of Financial Economics, 24
-
Theo Vermaelen (1984)
Repurchase Tender Offers, Signaling, and Managerial IncentivesJournal of Financial and Quantitative Analysis, 19
-
Joseph Finnerty (1976)
Insiders and Market EfficiencyJournal of Finance, 31
-
Ashok Korwar, Ronald Masulis (1986)
Seasoned Equity Offerings: An Empirical InvestigationCapital Markets: Market Efficiency
-
P. Asquith, D. Mullins (1983)
The Impact of Initiating Dividend Payments on Shareholders' WealthThe Journal of Business, 56
-
Guy Charest (1978)
Dividend information, stock returns and market efficiency-IIJournal of Financial Economics, 6
-
Woolridge, Chinmoy Ghosh (1985)
Dividend cuts: Do they always signal bad news, 3
-
S. Ross (1977)
The determination of financial structure: the incentive-signalling approachThe Bell Journal of Economics, 8
- Publisher
- Wiley
- Copyright
- 1991 The American Finance Association
- ISSN
- 0022-1082
- eISSN
- 1540-6261
- DOI
- 10.1111/j.1540-6261.1991.tb04621.x
- Publisher site
- See Article on Publisher Site
Abstract
ABSTRACT The informational role of strategic insider trading around corporate dividend announcements is studied based on the efficient equilibrium in a signalling model with endogenous insider trading. Insider trading immediately prior to the announcement of dividend initiations has significant explanatory power. For firms with insider selling prior to the dividend initiation announcement, the excess returns are negative and significantly lower than for the remaining firms (with no insider trading or just insider buying) as implied by our model. Another implication is that dividend increases may elicit a positive or negative stock price response depending on the firm's investment opportunities.
Journal
The Journal of Finance – Wiley
Published: Sep 1, 1991