Naslov
Dividends-Lagging indicator of companies business?

Autori
Miletić, Marko ; Buljan Barbača, Domagoja ; Lolić Čipčić, Marina

Vrsta, podvrsta i kategorija rada
Sažeci sa skupova, prošireni sažetak, znanstveni

Izvornik
Proceedings (Book of Extended Abstracts) of the 5th International Conference: Economic Development Perspectives of SEE Region in the Global Recession Context, School of Economics and Business, University of Sarajevo / Trivun, Veljko ; Đonlagić, Dženan ; Mehić, Eldin - : Chool of Economics and Business, University of Sarajevo, 2010, 171-172

ISBN
978-9958-25-046-0

Skup
5th International Conference: Economic Development Perspectives of SEE Region in the Global Recession Context, School of Economics and Business

Mjesto i datum
Sarajevo, Bosna i Hercegovina, 14.10.2010. - 15.10.2010

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
dividends, signaling, information asymmetry, financial ratios

Sažetak
According to the dividend signaling model, dividend increase conveys good news and dividend decrease conveys bad news about the firm’s future. In accordance with dividend signaling model, dividends reduce information asymmetry by acting as a trustworthy signal from corporate insiders to the company’s shareholders. Some studies find a positive relationship between dividend and future earnings changes, while others report a very weak positive relationship, no relationship or a negative relationship between dividend and future earnings changes. On the other hand, there is evidence that describes dividends as a lagging rather than a leading indicator of earnings. The purpose of this paper is to investigate if there are statistically significant differences in specific financial ratios between companies who have increased the dividend and companies who have decreased the dividend. The research will try to determine if the financial results of the companies that have increased the dividend were superior prior to the dividend increase confronted with the companies that have decreased the dividend. If there is statistically significant difference in financial ratios between the companies that have decreased and those that have increased the dividend, we can distinguish what financial ratios are important and, based on those financial ratios, we can make assumptions about the company’s intention to increase or decrease its dividend.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA