Interim Dividend Cuts and Omissions in the U.K.

EUROPEAN FINANCIAL MANAGEMENT, Vol. 2 No. 1

Posted: 29 Jun 1998

See all articles by Balasingham Balachandran

Balasingham Balachandran

La Trobe Business School, La Trobe University; Financial Research Network (FIRN)

John Cadle

University of Birmingham

Michael Theobald

University of Birmingham - Department of Accounting and Finance

Abstract

U.K. firms that cut or omit interim dividends during the period 1986-1993 are studied. Price reactions to cuts and omissions were found to be significantly negative and stronger for initial reductions. Gearing, company size and interim earnings change variables were found to have explanatory power for the decision to determine whether to cut or omit an interim dividend.

JEL Classification: G15

Suggested Citation

Balachandran, Balasingham and Cadle, John and Theobald, Michael F., Interim Dividend Cuts and Omissions in the U.K.. EUROPEAN FINANCIAL MANAGEMENT, Vol. 2 No. 1, Available at SSRN: https://ssrn.com/abstract=7491

Balasingham Balachandran

La Trobe Business School, La Trobe University ( email )

La Trobe Business School
La Trobe University
Bundoora, Victoria 3086
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

John Cadle

University of Birmingham

Birmingham B15 2TT, Birmingham B15 2TT
United Kingdom

Michael F. Theobald (Contact Author)

University of Birmingham - Department of Accounting and Finance ( email )

Birmingham B15 2TT
United Kingdom
0121 414 6678 (Fax)

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