Revisiting the corroboration effects of earnings and dividend announcements

Tsz Wan Cheng, T. Y. Leung

Research output: Journal article publicationJournal articleAcademic researchpeer-review

4 Citations (Scopus)

Abstract

Using a unique market setting in Hong Kong, where (i) all firms release earnings and dividend information in the same announcement; (ii) corporate transparency is low; (iii) dividend income is non-taxable and (iv) corporate ownership is highly concentrated, we re-examine the corroboration effects of earnings and dividends. We use the control firm approach to avoid the return estimation bias resulting from observation clustering. We also add in variables and use econometric procedure to control for the potential impacts of earnings management, special dividends and heteroskedasticity. Our findings show that there exists a corroboration effect between the jointly announced signals.
Original languageEnglish
Pages (from-to)221-241
Number of pages21
JournalAccounting and Finance
Volume46
Issue number2
DOIs
Publication statusPublished - 1 Jun 2006

Keywords

  • Corroboration effects
  • Dividends
  • Earnings

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics, Econometrics and Finance (miscellaneous)

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