| Summary: | 碩士 === 國立交通大學 === 財務金融研究所 === 96 === Many scholars indicate that firms after SEOs announcement would sustain long term negative performance for more than three years. However, if firms increase (decreasing) its’ dividend payout would result in positive (negative) return in the long run. This paper examines the impact of dividend policy on the long term performance of SEOs firms. Categorizing by dividend policy, if the firms keep paying dividend after SEOs announcement perform best in long term performance, non-dividend-paying firms get the second best result, and the worst is firms paying dividend around SEOs and cut off after SEOs announcement. Moreover, firms continue paying dividend for longer period before SEOs would get less long term negative returns. This result is consistent with asymmetric information and signal theory. The firms paying dividend statistically have higher ROA, market value, total asset, and firm age, which means that most of dividend-paying firms are larger, more stable, and more mature.
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