Using company dividend policy to predict future earnings and growth opportunities
The purpose of the article is to analyze the relationship among dividend policy,future earnings and growth opportunities.And the results are below:
1.Total dividend and cash dividend can predict future earnings,but stock dividend can only reflect current earnings
2.total dividend and stock dividend are signaling effect,but I have a diffent result in cash dividend.
Using MBA,MBE and E/P as substitute variables,it is contracting effect.But using R&D as a substitute variable,it is signaling effect.
Advisor:Jen-Jsung Huang; David Shyu; Henry Y. Lo
School:National Sun Yat-Sen University
School Location:China - Taiwan
Source Type:Master's Thesis
Keywords:contracting effect growth opportunity future earning dividend policy signaling
Date of Publication:06/07/2004