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dc.contributor.authorPathan, Md Shams Tabrize
dc.contributor.authorFaff, R.
dc.contributor.authorMéndez, C.F.
dc.contributor.authorMasters, N.
dc.date.accessioned2019-10-21T07:05:57Z
dc.date.available2019-10-21T07:05:57Z
dc.date.issued2016
dc.identifier.citationPathan, S. and Faff, R. and Méndez, C.F. and Masters, N. 2016. Financial constraints and dividend policy. Australian Journal of Management. 41 (3): pp. 484-507.
dc.identifier.urihttp://hdl.handle.net/20.500.11937/76641
dc.identifier.doi10.1177/0312896214557835
dc.description.abstract

© The Author(s) 2015. Using a sample of US listed firms over the 1989–2012 period, we find that financially constrained dividend-increasing firms experience superior short-run abnormal stock returns, but suffer worse operating performance compared to similar unconstrained firms. More specifically, constrained firms in more competitive industries realize poorer long-run and operating performance. Likewise, constrained firms that increase dividends during the financial crisis also deliver inferior post-dividend-increase long-run return than do unconstrained firms. We also find evidence that constrained firms show worse stock market reaction to new equity issue announcements following dividend increase, but display a positive market response if they potentially have high investment growth opportunities. Our results are robust to alternative financial constraint proxies and abnormal return measures.

dc.languageEnglish
dc.publisherSAGE PUBLICATIONS LTD
dc.subjectSocial Sciences
dc.subjectBusiness
dc.subjectManagement
dc.subjectBusiness & Economics
dc.subjectDividends
dc.subjectfinancial constraints
dc.subjectseasoned equity issues
dc.subjectEARNINGS MANAGEMENT
dc.subjectSHARE REPURCHASES
dc.subjectMARKET-EFFICIENCY
dc.subjectCORPORATE-FINANCE
dc.subjectCASH HOLDINGS
dc.subjectRETURNS
dc.subjectPERFORMANCE
dc.subjectINFORMATION
dc.subjectINVESTMENT
dc.subjectANNOUNCEMENTS
dc.titleFinancial constraints and dividend policy
dc.typeJournal Article
dcterms.source.volume41
dcterms.source.number3
dcterms.source.startPage484
dcterms.source.endPage507
dcterms.source.issn0312-8962
dcterms.source.titleAustralian Journal of Management
dc.date.updated2019-10-21T07:05:57Z
curtin.departmentSchool of Economics, Finance and Property
curtin.accessStatusFulltext not available
curtin.facultyFaculty of Business and Law
curtin.contributor.orcidPathan, Md Shams Tabrize [0000-0001-8171-3501]
curtin.contributor.researcheridPathan, Md Shams Tabrize [A-3837-2012]
dcterms.source.eissn1327-2020
curtin.contributor.scopusauthoridPathan, Md Shams Tabrize [23100726500]


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