A tax-based test of the dividend signaling hypothesis

Article Abstract:

A new procedure to evaluate dividend signaling intended to differentiate signaling and other hypotheses of dividend preference was discussed. The procedure uses stock data reactions to dividend announcements. Specifically, the impact of dividend taxation on 'bang-for-the-buck,' described as the share price response for every dollar of dividends, was studied. Recent studies on bang-for-the-buck and dividend variables support the implications of dividend signaling hypothesis.

Dividends

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Conversation, information, and herd behavior

Article Abstract:

Herd behavior refers to the striking phenomenon where people that interact regularly with each other express a common thinking and behavior pattern. This behavior type can be addressed through theories of information, particularly by representations of a specific group and its reaction to a common information set. Differences across groups in the nature of information transmission is considered as the most vital factor in explaining mass behavioral differences.

Consumer behavior, Human information processing

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The effect of private antitrust litigation on the stock-market valuation of the firm

Article Abstract:

The effect of private antitrust litigation on shareholder wealth and the stock market's reaction to these law suits were examined by studying the Georgetown Study of 1,959 private antitrust suits filed from 1973-1983. Among the findings were that average wealth loss of defendants were 0.6% of a firm's equity value, or about $4 million, while the wealth gain of plaintiffs was 1.2% with an average value of $3 million.

Economic aspects, Stock-exchange, Stock exchanges, Antitrust law

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