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    Buybacks versus Ordinary Dividends: Marginal Investor Reactions to Cash-return Announcements (2013)

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    12646730_1303.pdf (758.4Kb)
    Type of Content
    Discussion / Working Papers
    UC Permalink
    http://hdl.handle.net/10092/10238
    
    Publisher
    University of Canterbury. Department of Economics and Finance
    Collections
    • Business: Working Papers [193]
    Authors
    Anderson, W.
    McLaughlin, S.
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    Abstract

    This paper examines the stock price effect in New Zealand of announcements of increases in dividends and of share repurchases from 1993 to 2009. The results are related to the soft substitution hypothesis on Australian data. Dividend-increase announcements provoke a greater positive effect on the stock price than buyback announcements. The preference of the marginal investor is also examined when firms distribute cash through both mechanisms. Again, investors prefer dividend increases over repurchases, and do so to a greater degree than for firms that only use one form of distribution.

    Citation
    Anderson, W., McLaughlin, S. (2013) Buybacks versus Ordinary Dividends: Marginal Investor Reactions to Cash-return Announcements..
    This citation is automatically generated and may be unreliable. Use as a guide only.
    Keywords
    Event Study; Dividends; Stock Repurchases; Abnormal Returns
    ANZSRC Fields of Research
    35 - Commerce, management, tourism and services::3502 - Banking, finance and investment::350208 - Investment and risk management
    38 - Economics::3801 - Applied economics::380107 - Financial economics
    Rights
    https://hdl.handle.net/10092/17651

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