Title
Stock Price Reaction To Dividend Increases In The Hotel And Restaurant Sector
Keywords
Corporate finance; Dividend; Event study; Reaction; Valuation
Abstract
This study assesses the stock price reaction to announcements of dividend increases by firms in the hospitality industry using a standard event study methodology. Results indicate that dividend increases are favorably received by market participants because a statistically significant positive market reaction is observed. Results of a cross-sectional analysis show that the size of the market reaction across firms is positively related to the magnitude of the dividend increase. These results imply that managers ought to carefully consider the ramifications of a change in dividend policy because such changes appear to be perceived as signals of the firm's future financial condition. © 1999 Council on Hotel, Restaurant and Institutional Education.
Publication Date
12-1-1999
Publication Title
Journal of Hospitality and Tourism Research
Volume
23
Issue
1
Number of Pages
40-52
Document Type
Article
Personal Identifier
scopus
DOI Link
https://doi.org/10.1177/109634809902300104
Copyright Status
Unknown
Socpus ID
64049087451 (Scopus)
Source API URL
https://api.elsevier.com/content/abstract/scopus_id/64049087451
STARS Citation
Borde, Stephen F.; Byrd, Anthony K.; and Atkinson, Stanley M., "Stock Price Reaction To Dividend Increases In The Hotel And Restaurant Sector" (1999). Scopus Export 1990s. 4198.
https://stars.library.ucf.edu/scopus1990/4198