n Studies in Economics and Econometrics - Dividend veranderings in Suid-Afrika - tekenend van die verlede of toekoms?

Volume 25, Issue 2
  • ISSN : 0379-6205


This study attempts to answer the question whether changes in dividends contain information about future and/or present changes in earnings as many dividend theories imply. Results show no significant support for the dividend theory. Also, the size of the dividend increases does not predict future earnings. A strong and consistent observation was that companies that had cut dividends show a growth in earnings in the following years. The results also indicate that companies that increase dividends are less likely to experience a drop in future earnings than those firms with similar earnings growth that do not change their dividends.

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