The Stockholders’ Wealth Effect of Stock Dividends by Companies’ Announcement: The Roles of Investment Opportunities Hypothesis and Free Cash Flow Theory
碩士 === 朝陽科技大學 === 財務金融系碩士班 === 89 === The purpose of this study is trying to explain the shareholders’ wealth effect by investment opportunities hypothesis and free cash flow theory. On the whole samples, the market-price will increase by stock dividends of conpanies’ announcement. We also find that...
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| Format: | Others |
| Language: | zh-TW |
| Published: |
2001
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| Online Access: | http://ndltd.ncl.edu.tw/handle/48268326714550362952 |
| Summary: | 碩士 === 朝陽科技大學 === 財務金融系碩士班 === 89 === The purpose of this study is trying to explain the shareholders’ wealth effect by investment opportunities hypothesis and free cash flow theory. On the whole samples, the market-price will increase by stock dividends of conpanies’ announcement. We also find that a company with good investment opportunities and announcing to distribute stock dividends will have a significantly positive return.
On the contrary, a company with poor opportunities will have a significantly negative return. At the same time, our results also show that free cash flow theory plays an important role in explaining the positive marketable reaction by announcement of companies’ stock dividends. So our results support both the investment oppurtunities hypothesis and free cash flow theory. Under some other controlled variables（size and dividend yield）, these effects still remain.
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