The Effects Of Dividend Payout Ratio And Dividend To Available Earnings On Price Momentum

• Main Authors: Chiang,Tung-Feng, 江銅峰
• Other Authors: 蕭慧玲
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/57197905080128419050

碩士 === 東海大學 === 企業管理學系碩士班 === 99 === This Study investigates the effects of dividend Payout Ration and Dividend to Available Earnings on price Momentum. The importance of dividend payments to the capital market that conveys the business performance and future prospects, has long been recognized by academics and practitioners. This paper is aligned with Asem (2009). We intend to demonstrate that the trading strategies followed by price momentum and dividend policy could be powerful in explaining that the dividends and price momentum. In addition, the price momentum model we added more than the dividend payout ratio and dividend to available earnings, investigates the effects of price Momentum. The empirical results of this study show that buying winners that increased their dividends and shorting losers that decreased their dividends enhances momentum profits. Investment strategies available to an average of 7.252% monthly return, the relative raw price momentum of 5.252 percent rate of 2% monthly return. Consistent with the evidence , the behavioral models suggest that investors underrate to the loser`s positive dividend increased news, reducing their return momentum and shrinking the payers `s momentum profit. In addition, we found that high dividend paying portfolio dividends kinetic energy can enhance the rate of return from the company's high dividend payout ratio for dividends momentum strategy available in the 9.07% monthly average return. Yet the high rate of dividend to available earnings as dividends momentum strategy can improve the rate of return, but not as good as the high dividend payout ratio of portfolio performance.