The intra-industry impact of special dividend announcements: Contagion versus competition

Balasingham Balachandran*, Robert Faff, Tuan Anh Nguyen

*Corresponding author for this work

Research output: Contribution to journalArticleResearchpeer-review

10 Citations (Scopus)

Abstract

This study examines the industry wide impact of special dividend announcements for a sample of Australian companies. With regard to the own-impact of announcers, industrial firms react significantly stronger than announcers of financial and resources firms. With regard to the cross-impact on non-announcers within the same sub-industry grouping, resources firms react positively while financial firms react negatively. No detectable price reaction was found for non-announcers of industrial non-financial firms. As such, evidence presented in this paper generally provides support for the 'contagion' hypothesis for resources firms and the 'competitive shift' hypothesis for financial firms.

Original languageEnglish
Pages (from-to)369-385
Number of pages17
JournalJournal of Multinational Financial Management
Volume14
Issue number4-5
DOIs
Publication statusPublished - Oct 2004
Externally publishedYes

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