Scandinavian Working Papers in Economics

Nationaløkonomisk tidsskrift,
Nationaløkonomisk Forening

Udbytteannonceringseffekten i Danmark

2006, Volume 2006, issue 1, pp. 137-168

Esben Kolind Laustrup () and Johannes Raaballe ()
Additional contact information
Esben Kolind Laustrup: Afdeling for Virksomhedsledelse, Aarhus Universitet
Johannes Raaballe: Afdeling for Virksomhedsledelse, Aarhus Universitet

Abstract: This event study is the first to examine the price effect of dividend announcements on the Copenhagen Stock Exchange. Almost all Danish dividend announcements (98%) coincide with the release of the yearly accounting report, and we find that an unexpected dividend increase leads to a significant announcement effect of 2.6% whereas an unexpected dividend decrease leads to an insignificant announcement effect of -0.9%. Controlling for simultaneous earnings announcements we find announcement effects of the same order. The announcement effect of increased dividends is in line with results reported for US and UK markets whereas the announcement effect of decreased dividends is somewhere between results reported from US/UK and Continental Europe. We find that unexpected dividends and unexpected earnings both contain significant information in explaining the announcement effect of the yearly accounting report. Furthermore we find significant interaction effects of the simultaneous announcement of dividends and earnings. Finally, we find indications that the owner structure may explain the asymmetric announcement effect of unexpected increases/decreases in dividends. Overall, the findings are in support of a signaling hypothesis. However, there are indications that this explanation does not hold for firms dominated by large shareholders where the results are more in line with results reported from Continental Europe.

Keywords: udbytte

JEL-codes: A10

Language: Danish

Full text files

2006.pdf PDF-file Full text

Download statistics

Questions (including download problems) about the papers in this series should be directed to Lasse Wolsgård ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2024-03-20 23:25:50.