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The Information Content of Dividends: A Signalling Approach
16 references·11 citing·27 second hop
The Information Content of Dividends: A Signalling Approach (1986)The Information Content of Dividends: A S…Signaling, Information Content, and the Reluctance to Cut Dividends (1980)Signaling, Information Conten…Nondissipative Signaling Structures and Dividend Policy (1980)Nondissipative Signaling Stru…Imperfect Information, Dividend Policy, and "The Bird in the Hand" Fallacy (1979)Imperfect Information, Divide…The Valuation of Corporate Liabilities as Compound Options (1977)The Valuation of Corporate Li…The Determination of Financial Structure: The Incentive-Signalling Approach (1977)The Determination of Financia…INFORMATIONAL ASYMMETRIES, FINANCIAL STRUCTURE, AND FINANCIAL INTERMEDIATION (1977)INFORMATIONAL ASYMMETRIES, FI…The Valuation of Uncertain Income Streams and the Pricing of Options (1976)The Valuation of Uncertain In…Option pricing (1976)Option pricingCompetitive and optimal responses to signals: An analysis of efficiency and distribution (1974)Competitive and optimal respo…The Pricing of Options and Corporate Liabilities (1973)The Pricing of Options and Co…The Investment, Financing, and Valuation of the Corporation (1963)The Investment, Financing, an…The Savings Investment and Valuation of a Corporation (1962)The Savings Investment and Va…Dividends, Earnings, Leverage, Stock Prices and the Supply of Capital to Corporations (1962)Dividends, Earnings, Leverage…Dividend Policy, Growth, and the Valuation of Shares (1961)Dividend Policy, Growth, and …Dividends, Earnings, and Stock Prices (1959)Dividends, Earnings, and Stoc…DISTRIBUTION OF INCOMES OF CORPORATIONS AMONG DIVIDENDS, RETAINED EARNINGS AND TAXES (1956)DISTRIBUTION OF INCOMES OF CO…Dividend Policy, Signaling Theory: A Literature Review (2019)Dividend Policy, Signaling Th…Bubble detection and sector trading in real time (2018)Bubble detection and sector t…Effect of Dividend on Stock Price in Emerging Stock Market: A Study on the Listed Private Commercial Banks in DSE (2010)Effect of Dividend on Stock P…Are Dividends Disappearing or Shrinking? Evidence from the Istanbul Stock Exchange (2010)Are Dividends Disappearing or…The perception of dividends by professional investors (2006)The perception of dividends b…Dividend Policy and Corporate Governance (2004)Dividend Policy and Corporate…The Information Signaling Hypothesis of Dividends: Evidence from Cointegration and Causality Tests (2003)The Information Signaling Hyp…Effect of Dividend Announcement on Shareholders' Value: Evidence from Dhaka Stock Exchange (2003)Effect of Dividend Announceme…The Perception of Dividends By Management (2002)The Perception of Dividends B…Examining the Impact of the 1986 Tax Reform Act on Corporate Dividend Policy: A New Methodology (1999)Examining the Impact of the 1…Bank Dividend Policy as a Signal of Bank Quality (1995)Bank Dividend Policy as a Sig…The Cost of Capital, Corporation Finance and the Theory of Investment (1958)Corporate financing and investment decisions when firms have information that investors do not have (1984)Corporate Financing and Investment Decisions When Firms Have InformationThat Investors Do Not Have (1984)The investment opportunity set and corporate financing, dividend, and compensation policies (1992)CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK* (1964)A Closed-Form Solution for Options with Stochastic Volatility with Applications to Bond and Currency Options (1993)Theory of rational option pricing (2005)ON THE PRICING OF CORPORATE DEBT: THE RISK STRUCTURE OF INTEREST RATES* (1974)The American Put Option Valued Analytically (1984)The Link between Default and Recovery Rates: Theory, Empirical Evidence, and Implications* (2005)Financial distress and bankruptcy prediction among listed companies using accounting, market and macroeconomic variables (2013)The Market for "Lemons": Quality Uncertainty and the Market Mechanism (1970)Theory of the firm: Managerial behavior, agency costs and ownership structure (1976)The Capital Structure Puzzle (1984)Job Market Signaling (1973)Financial Intermediation and Delegated Monitoring (1984)THE VALUATION OF RISK ASSETS AND THE SELECTION OF RISKY INVESTMENTS IN STOCK PORTFOLIOS AND CAPITAL BUDGETS**This paper is another in a series of interrelated theoretical and statistical studies of corporate financial and investment policies being made under grants from the Rockefeller Foundation, and more recently the Ford Foundation, to the Harvard Business School. The generous support for this work is most gratefully acknowledged. The author is also much indebted to his colleagues Professors Bishop, Christenson, Kahr, Raiffa, and (especially) Schlaifer, for extensive discussion and commentary on an earlier draft of this paper; but responsibility for any errors or imperfections remains strictly his own.[Professor Sharpe's paper, “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk” (Journal of Finance, September 1964) appeared after this paper was in final form and on its way to the printers. My first section, which parallels the first half of his paper (with corresponding conclusions), sets the algebraic framework for sections II, III and VI, (which have no counterpart in his paper) and for section IV on the equilibrium prices of risk assets, concerning which our results differ significantly for reasons which will be explored elsewhere. Sharpe does not take up the capital budgeting problem developed in section V below.] (1975)The Dividend-Price Ratio and Expectations of Future Dividends and Discount Factors (1988)Predicting Excess Stock Returns Out of Sample: Can Anything Beat the Historical Average? (2007)The Behavior of Stock-Market Prices (1965)Determinants of corporate borrowing (1977)A Life Cycle Theory of the Firm (1972)Value-Enhancing Capabilities of CSR: A Brief Review of Contemporary Literature (2014)Stock Market Analysis: A Review and Taxonomy of Prediction Techniques (2019)Implied Binomial Trees (1994)Resurrecting the (C)CAPM: A Cross‐Sectional Test When Risk Premia Are Time‐Varying (2001)The Adaptive Markets Hypothesis (2004)
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References

  • 1973The Pricing of Options and Corporate Liabilities29,064 cited
  • 1961Dividend Policy, Growth, and the Valuation of Shares6,554 cited
  • 1977The Determination of Financial Structure: The Incentive-Signalling Approach4,163 cited
  • 1977INFORMATIONAL ASYMMETRIES, FINANCIAL STRUCTURE, AND FINANCIAL INTERMEDIATION4,056 cited
  • 1956DISTRIBUTION OF INCOMES OF CORPORATIONS AMONG DIVIDENDS, RETAINED EARNINGS AND TAXES3,426 cited
  • 1979Imperfect Information, Dividend Policy, and "The Bird in the Hand" Fallacy2,809 cited
  • 1976The Valuation of Uncertain Income Streams and the Pricing of Options1,620 cited
  • 1959Dividends, Earnings, and Stock Prices1,301 cited
  • 1963The Investment, Financing, and Valuation of the Corporation958 cited
  • 1977The Valuation of Corporate Liabilities as Compound Options830 cited
  • 1974Competitive and optimal responses to signals: An analysis of efficiency and distribution795 cited
  • 1976Option pricing473 cited
  • 1962Dividends, Earnings, Leverage, Stock Prices and the Supply of Capital to Corporations464 cited
  • 1962The Savings Investment and Valuation of a Corporation365 cited
  • 1980Nondissipative Signaling Structures and Dividend Policy

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280 cited
  • 1980Signaling, Information Content, and the Reluctance to Cut Dividends176 cited
  • Cited by

    • 2010Effect of Dividend on Stock Price in Emerging Stock Market: A Study on the Listed Private Commercial Banks in DSE64 cited
    • 2003Effect of Dividend Announcement on Shareholders' Value: Evidence from Dhaka Stock Exchange59 cited
    • 1995Bank Dividend Policy as a Signal of Bank Quality46 cited
    • 1999Examining the Impact of the 1986 Tax Reform Act on Corporate Dividend Policy: A New Methodology35 cited
    • 2010Are Dividends Disappearing or Shrinking? Evidence from the Istanbul Stock Exchange30 cited
    • 2006The perception of dividends by professional investors29 cited
    • 2003The Information Signaling Hypothesis of Dividends: Evidence from Cointegration and Causality Tests28 cited
    • 2018Bubble detection and sector trading in real time27 cited
    • 2004Dividend Policy and Corporate Governance24 cited
    • 2019Dividend Policy, Signaling Theory: A Literature Review24 cited
    • 2002The Perception of Dividends By Management22 cited