Accounting rules and the signaling properties of 20 percent stock dividends

Accounting Review

Volumn 72, Issue 1, 1997, Pages 23-46

  Rankine, Graeme W ^a   Stice, Earl K ^a  

^a NONE

Author keywords

Accounting choice; Retained earnings; Signaling; Stock dividends

Indexed keywords

EID: 0031288058     PISSN: 00014826     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (37)

1. Asquith, P., P. Healy, and K. Palepu. 1989. Earnings and stock splits. The Accounting Review 64 (July): 387-403.
2. Atiase, R. 1985. Pre-disclosure information, firm capitalization, and the security price behavior around earnings announcements. Journal of Accounting Research 23 (Spring): 21-36.
3. Baker, K., and A. Phillips. 1994. Why companies issue stock dividends. Financial Practice and Education 3 (Fall): 29-37.
4. Banker, R., S. Das, and S. Datar. 1993. Complementarity of prior accounting information: The case of stock dividends. The Accounting Review 68 (January): 28-47.
5. Brennan, M., and T. Copeland. 1988. Stock splits, stock prices, and transactions costs. Journal of Financial Economics 22 (October): 83-101.
6. -, and P. Hughes. 1991. Stock prices and the supply of information. Journal of Finance 66 (December): 1665-1691.
7. Christie, W. 1994. Are dividend omissions truely the cruelest cut of all? Journal of Financial and Quantitative Analysis 29 (September): 459-480.
8. Davies, M., R. Paterson, and A. Wilson. 1992. U.K. GAAP. 3rd. ed. London, U.K.: Macmillan.
9. Denis, D. J., D. K. Denis, and A. Sarin. 1994. The information content of dividend changes: Cash flow signaling, overinvestment, and dividends clienteles. Journal of Financial and Quantitative Analysis 29 (December): 567-587.
10. Doran, D. 1990. Stock dividend events: Empirical support for the retained earnings hypothesis. Advances in Accounting 8: 3-23.
11. Duke, J., and H. Hunt III. 1990. An empirical examination of debt covenant restrictions and accounting-related proxies. Journal of Accounting and Economics 12 (January): 45-63.
12. Fama, E., L. Fisher, M. Jensen, and R. Roll. 1969. The adjustment of stock prices to new information. International Economic Review 10 (February): 1-21.
13. Fiflis, T. 1991. Accounting Issues for Lawyers. St. Paul, MN: West Publishing.
14. Financial Accounting Standards Board 1995. Original Pronouncements. Accounting Research Bulletin No. 43. Stamford, CT.
15. Grinblatt, M., R. Masulis, and S. Titman. 1984. The valuation effects of stock splits and stock dividends. Journal of Financial Economics, 13 (December): 461-490.
16. Healy, P., and K. Palepu. 1988. Earnings information conveyed by dividend initiations and omissions. Journal of Financial Economics 21 (September): 149-175.
17. 1993. The effects of firms' financial disclosure strategies on stock prices. Accounting Horizons 7 (March): 1-11.
18. Jensen, M. 1986. Agency costs of free cash flows, corporate finance, and takeovers. American Economic Review 76 (May): 323-329.
19. -, and W. Meckling. 1976. Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics 3 (October): 305-360.
20. John, K., and J. Williams. 1985. Dividends, dilution, and taxes: A signaling equilibrium. Journal of Finance 60 (September): 1053-1070.
21. Kalay, A. 1982. Stockholder-bondholder conflict and dividend constraints. Journal of Financial Economics 10 (July): 211-233.
22. Kerrigan, H. 1937. Accounting for stock dividends paid. The Accounting Review 12 (October): 369-385.
23. Lakonishok, J., and B. Lev. 1987. Stock splits and stock dividends: Why, who, and when. Journal of Finance 42 (September): 913-932.
24. McGough, P. 1988. The legal significance of the par value of common stocks: What accounting educators should know. Issues in Accounting Education (Fall): 330-350.
25. McNichols, M., and A. Dravid. 1990. Stock dividends, stock splits, and signaling. Journal of Finance 45 (July): 857-879.
26. Miller, M., and K. Rock. 1985. Dividend policy under asymmetric information. Journal of Finance 60 (September): 1031-1051.
27. Morse, D. 1984. An econometric analysis of the choice of daily versus monthly returns in tests of information content. Journal of Accounting Research 22 (Autumn): 605-623.
28. New York Stock Exchange. 1992. Listed Company Manual. New York, NY.
29. Noreen, E. 1989. Computer-Intensive Methods for Testing Hypotheses: An Introduction. New York, NY: Wiley-Interscience.
30. Peterson, C., J. Millar, and J. Rimbey. 1996. The economic consequences of accounting for stock splits and large stock dividends. The Accounting Review 71 (April): 241-253.
31. Peterson, D., and P. Peterson. 1992. A further understanding of stock distributions: The case of reverse stock splits. Journal of Financial Research 15 (Fall): 189-205.
32. Press, E., and J. Weintrop. 1988. Accounting-based constraints in public and private debt agreements. Journal of Accounting and Economics 12 (January): 65-95.
33. Rankine, G., and E. Stice. 1996. The market reaction to the choice of accounting method for stock splits and large stock dividends. Working paper, Hong Kong University of Science and Technology, Hong Kong.
34. Roberts, M., W. Samson, and M. Dugan. 1990. The stockholders' equity section: Form without substance? Accounting Horizons 4 (December): 35-46.
35. Smith, C., and J. Warner. 1979. On financial contracting: An analysis of bond covenants. Journal of Financial Economics 7 (June): 117-161.
36. Whittred, G., and I. Zimmer. 1992. Financial Accounting: Incentive Effects and Economic Consequences. 3rd. ed. Sydney, Australia: Holt, Rinehart and Winston.
37. Woolridge, R. 1983. Stock dividends as signals. Journal of Financial Research 6 (Spring): 1-12.