DOI: 10.5176/2251-1997_AF-102
Authors: Adel A. Al-Sharkas and Moade Fawzi Shubita
Abstract:
This paper investigates factors that can explain the Cumulative Abnormal Returns (CAR) that we see on and around an announcement of a dividend increase, when this dividend increase is followed by a dividend decrease. The results show that although size explains the CAR to some extent, the dollar amount lost when the first dividend decrease is announced and the increase in income in dollar when the current dividend increase is announced are the two most important factors.
Keywords: Abnormal Returns, Dividends Policy, Dividends Announcement, Market Efficiency
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