Dividend policy prior and after the NASDAQ bubble: An Empirical Investigation of 188 firms in the S&P Index
Abstract This dissertation aims to investigate the dividend payments before and after the NASDAQ internet bubble of a sample of 188 listed firms on the S&P 500 index in the USA from 1995 to 2005. Because most firms reduce dividend payment in distress period as prior researches suggested, this di...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2010
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| Online Access: | https://eprints.nottingham.ac.uk/24062/ |
| _version_ | 1848792693563457536 |
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| author | Yukun, Yao |
| author_facet | Yukun, Yao |
| author_sort | Yukun, Yao |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Abstract
This dissertation aims to investigate the dividend payments before and after the NASDAQ internet bubble of a sample of 188 listed firms on the S&P 500 index in the USA from 1995 to 2005. Because most firms reduce dividend payment in distress period as prior researches suggested, this dissertation focuses on exploring the factors that influence the probability of dividend reduction decisions from 2000 to 2005. A liner probability model is undertaken. Several potential factors that affect the firms’ decision to cut dividend are chosen: earnings, profitability, investment opportunity, binding debt covenant and firm size. Most results are consistent with prior empirical evidence except that firm size is found to have the mixing results relating to firms’ decision to cut dividends.
In addition, this dissertation attempts to test the information content of dividends Hypothesis (ICH) and the efficient market hypothesis (EMH) by investigating the stock price reaction to dividend announcements in 2000. The results indicate a significant market adjusted abnormal return associating with dividend announcements that provides the support for signaling theory and also suggests that the US stock market is inefficient with regard to the semi-strong form EMH. |
| first_indexed | 2025-11-14T18:48:28Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-24062 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T18:48:28Z |
| publishDate | 2010 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-240622018-03-24T09:18:26Z https://eprints.nottingham.ac.uk/24062/ Dividend policy prior and after the NASDAQ bubble: An Empirical Investigation of 188 firms in the S&P Index Yukun, Yao Abstract This dissertation aims to investigate the dividend payments before and after the NASDAQ internet bubble of a sample of 188 listed firms on the S&P 500 index in the USA from 1995 to 2005. Because most firms reduce dividend payment in distress period as prior researches suggested, this dissertation focuses on exploring the factors that influence the probability of dividend reduction decisions from 2000 to 2005. A liner probability model is undertaken. Several potential factors that affect the firms’ decision to cut dividend are chosen: earnings, profitability, investment opportunity, binding debt covenant and firm size. Most results are consistent with prior empirical evidence except that firm size is found to have the mixing results relating to firms’ decision to cut dividends. In addition, this dissertation attempts to test the information content of dividends Hypothesis (ICH) and the efficient market hypothesis (EMH) by investigating the stock price reaction to dividend announcements in 2000. The results indicate a significant market adjusted abnormal return associating with dividend announcements that provides the support for signaling theory and also suggests that the US stock market is inefficient with regard to the semi-strong form EMH. 2010-09-24 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/24062/1/Yukun_Yao.pdf Yukun, Yao (2010) Dividend policy prior and after the NASDAQ bubble: An Empirical Investigation of 188 firms in the S&P Index. [Dissertation (University of Nottingham only)] (Unpublished) |
| spellingShingle | Yukun, Yao Dividend policy prior and after the NASDAQ bubble: An Empirical Investigation of 188 firms in the S&P Index |
| title | Dividend policy prior and after the NASDAQ bubble:
An Empirical Investigation of 188 firms in the S&P Index |
| title_full | Dividend policy prior and after the NASDAQ bubble:
An Empirical Investigation of 188 firms in the S&P Index |
| title_fullStr | Dividend policy prior and after the NASDAQ bubble:
An Empirical Investigation of 188 firms in the S&P Index |
| title_full_unstemmed | Dividend policy prior and after the NASDAQ bubble:
An Empirical Investigation of 188 firms in the S&P Index |
| title_short | Dividend policy prior and after the NASDAQ bubble:
An Empirical Investigation of 188 firms in the S&P Index |
| title_sort | dividend policy prior and after the nasdaq bubble:
an empirical investigation of 188 firms in the s&p index |
| url | https://eprints.nottingham.ac.uk/24062/ |