Dividend signalling and investor protection: An international comparison

IF 2.9 3区 管理学 Q2 BUSINESS, FINANCE
Xiaotong Deng , Sander De Groote , Chao Kevin Li
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Abstract

This study examines whether dividend changes signal future earnings growth in non-US markets following the Ham et al. (2020) methodology and whether the strength of the earnings signal varies with the level of investor protection. Based on the notion that weak investor protection reduces the cost of cutting dividends and as such increases managers’ discretion to change dividends, we expect that the strength of the earnings signal in dividend increases becomes weaker as investor protection decreases. In a sample drawn from 38 different markets, our results indicate while dividends can signal future earnings in non-US markets, the strength of the signal is weaker than that in the US. In line with our predictions, we find that for firms in a strong investor protection environment, dividend changes are correlated more strongly with subsequent earning changes than is the case for firms in weak investor protection environments.

股利信号与投资者保护:国际比较
本研究采用 Ham 等人(2020 年)的方法,探讨股息变化是否是非美国市场未来盈利增长的信号,以及盈利信号的强度是否随投资者保护水平的变化而变化。基于投资者保护力度弱会降低削减股息的成本,从而增加管理者改变股息的自由裁量权这一概念,我们预计股息增加的盈利信号强度会随着投资者保护力度的减弱而减弱。在 38 个不同市场的样本中,我们的研究结果表明,虽然股息可以为非美国市场的未来盈利提供信号,但信号的强度要弱于美国市场。与我们的预测一致,我们发现,对于投资者保护环境较强的公司,股息变化与后续收益变化的相关性比投资者保护环境较弱的公司更强。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
6.00
自引率
3.00%
发文量
24
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