The ex-date impact of special dividend announcements: A note

Balasingham Balachandran, Robert Faff*, Tuan Anh Nguyen

*Corresponding author for this work

Research output: Contribution to journalArticleResearchpeer-review

3 Citations (Scopus)

Abstract

This study examines the impact of special dividend announcements for a sample of Australian companies on the ex date of the special dividend. This study documents that the drop-off ratio is significantly greater for special dividends that participate in DRPs than non-DRPs. Further, it reveals that the drop-off ratio is greater for resources firms than for financial and industrial firms. Finally, a cross-sectional regression model reveals that the drop in price on the ex-date is significantly related to the announcement period price reaction, DRPs versus non-DRPs, size of the company, and special dividend per share.

Original languageEnglish
Pages (from-to)635-643
Number of pages9
JournalInternational Review of Financial Analysis
Volume17
Issue number3
DOIs
Publication statusPublished - Jun 2008
Externally publishedYes

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