Dividend forecasts and dividend payments of initial public offerings-when zero means zero and no comment most likely also means zero

Dimovski, William and Brooks, Robert 2005, Dividend forecasts and dividend payments of initial public offerings-when zero means zero and no comment most likely also means zero, Applied financial economics letters, vol. 1, no. 3, pp. 139-141.

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Title Dividend forecasts and dividend payments of initial public offerings-when zero means zero and no comment most likely also means zero
Author(s) Dimovski, William
Brooks, Robert
Journal name Applied financial economics letters
Volume number 1
Issue number 3
Start page 139
End page 141
Publisher Routledge
Place of publication London, England
Publication date 2005-05
ISSN 1744-6554
1744-6546
Summary Managers often try to forecast dividends because as Brown et al. (2002)  suggest, dividends have cash flow implications for investors and are important signalling devices. This study analyses the dividend forecasts in the prospectuses of initial public offerings (IPOs) in Australia over the period 1994 to 1999. While many companies forecast dividends, many make no dividend forecast at all and some forecast no (or zero) dividends for the forthcoming year. This paper seeks to determine if no forecast at all should present a different signal to investors than a zero dividend forecast. It is found that those that do not forecast a dividend, by and large, do not pay a dividend. It is also found that those that forecast a zero dividend, true to their forecast, pay no dividend.
Language eng
Field of Research 150201 Finance
HERDC Research category C1 Refereed article in a scholarly journal
Copyright notice ©2005, Taylor & Francis Group Ltd
Persistent URL http://hdl.handle.net/10536/DRO/DU:30002896

Document type: Journal Article
Collection: School of Accounting, Economics and Finance
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