decide how much of its. In the period of depression the management may also retain a large part of its earnings to preserve the firm's liquidity position. When researching the information content of cash dividends, they found that cash dividends were associated very strongly with abnormal returns and that this supported the assumption that dividend changes convey information about future successfulness of the companies. The Journal of Finance, Vol liii, No 3, June, 879904. Dividend Stripping, Risk Exposure, and the Effect of the 1984 Tax Reform Act on the Ex-Dividend Day Behavior. Stock market efficiency tests in Finland are briefly described next, as they relate to dividends, and then the results of the Capital Asset Pricing Model (capm which includes dividends, are explained. KoseLang (1991) and SlowinSushka (1993) research various shareholder groups.
Journal of Financial Economics 28 (November/December 1994). In Finland Rozeff based agency theory application has studied Kinkki (1999) who found that dividend payout is affected by legal regimes (restricted equity) and corporate covernance dividend puzzle A review OF dividend theories measured major shareholders voting power. The expectations of dividends by shareholders helps them determine the share value, therefore, dividend policy is a significant decision taken by the. According the results the more voting power has major shareholder the more increased volatily of dividend payout. It is presumed that private investors buy future dividends when they buy a share and then a share is worth only what an investor can get out.
Impact of dividend on investment decision thesis pdf