| Summary: | 碩士 === 國立臺灣科技大學 === 財務金融研究所 === 95 === This paper examines whether cash dividend increases convey positive information about earnings prospects and its relationship with long-term stock return for electronics firms listing on TSEC. Electronics firms increases cash dividend significantly since 2000. Its differ from the stock dividend, cash dividend payout must consider current and future cash flow, and capability of debt raised. Therefore, besides the relationship between cash dividend increases and current operating performance, this paper also analysis that recognizing the conditions under the cash dividend increases takes place can substantially improve the relationship between cash dividend increases and future operating performance.
The study period covers from 1998 to 2005 and consist of 1799 observations. First, we examine the relationship between cash dividend increases and current operation performance using Logit model. Second, we use multiple regression model to examine the influence to subsequent operating performance following expected and unexpected cash dividend increases.Final, we examine the relationship between cash dividend increases and long-term stock return deriving from Market model. Consequently, the major findings of this study are as follows: (1) Cash dividend depends on current ROA level. (2) Cash dividend increases convey the positive information regarding subsequent operating performance. (3) Cash dividend increases will convey positive information regarding subsequent operation performance even if firms are making loss. (4) In spite of positive relation with subsequent operating performance, cash dividend increases has negative relationship with long term stock return.
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