Asymmetric price reactions to dividend announcements: Always irrational?
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DOI: 10.1016/j.econlet.2019.108713
Abstract: We demonstrate analytically that markets tend to react stronger to announcements of dividend cuts vs. increases when dividend payout costs are relatively low. This asymmetry prevails when investors are entirely rational, in contrast to Baker’s… read more here.
Keywords: asymmetric price; dividend announcements; reactions dividend; price reactions ... See more keywords