Earnings Information Conveyed By Dividend Initiations And Omissions
Earnings Information Conveyed By Dividend Initiations And Omissions
Paul M Healy
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35 0. 82 1. 95 0. 14 4 126 -3. 04 0. 12 1. 51 0. 88 Panel B: Industry-adjusted earnings changes Year -5 127 2. 36 0. 10 0. 21 0. 36 -4 127 0. 53 0. 73 0. 75 0. 06 -3 126 4. 27 0. 02 1. 14 0. 05 -2 124 -0. 35 0. 87 0. 66 0. 36 -1 123 1. 82 0. 24 1. 18 0. 15 124 3. 84 0. 01 2. 06 0. 01 1 126 2. 56 0. 18 1. 18 0. 08 2 127 5. 80 0. 02 2. 20 0. 04 3 119 -0. 01 0. 98 -0. 19 0. 89 4 115 -2. 16 0. 41 0. 63 0. 97 a The dividend initiation sample comprises 131 firms that announce dividend initiations in ...the period 1970 to 1979. Industry-adjusted earnings changes are available for 130 of these firms. They are defined as the difference in standardized earnings changes for the initiation firms and for matched comparison firms that are randomly selected from the same industry. D Changes in earnings per share before extraordinary items and discontinued operations for initiation and comparison firms are standardized by their stock price two days prior to the dividend initiation announcements. c Student t and Wilcoxon statistics test the hypotheses that the mean and median earnings changes are different from zero.
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