What do dividends demonstrate?<br />Durham University<br />Daisi Wang     Class 8<br />
Introduction<br />What is my essay question?<br />1<br />What is my main argument?<br />2<br />What is the purpose of diff...
Essay Question <br />To what extend do dividends (and dividend changes) convey useful information for investors?<br />
Main Argument<br />Dividends and dividend changes demonstrate <br />current company performance and  <br />future  profita...
First Section<br />Increase <br />earnings per share<br />Repurchase shares<br />Pay dividends<br />Why do companies pay d...
First Section<br />Attraction<br />Tax-differences<br />Institutions<br />Individual investors<br />and <br />institutions...
Second Section<br />1<br />Positive change to current permanent earnings <br />2<br />Dividends indicate current company p...
Third Section<br />1<br />2<br />Positively related to earning changes<br />Future abnormal earnings<br />Dividend changes...
Difficulties and Next to Do<br />Opposite opinions<br />Lots of models<br />English professional definitions<br />Independ...
References<br />Allen, F., Bernardo, A.E. , and Welch, I. (2000) ‘A theory of dividends based on tax clienteles’, Journal ...
Thank You !<br />Daisi Wang     Class 8<br />
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daisy wong

  1. 1. What do dividends demonstrate?<br />Durham University<br />Daisi Wang Class 8<br />
  2. 2. Introduction<br />What is my essay question?<br />1<br />What is my main argument?<br />2<br />What is the purpose of different section? <br />3<br />4<br />What have I found the difficulties?<br />5<br />what to do next?<br />
  3. 3. Essay Question <br />To what extend do dividends (and dividend changes) convey useful information for investors?<br />
  4. 4. Main Argument<br />Dividends and dividend changes demonstrate <br />current company performance and <br />future profitability.<br />
  5. 5. First Section<br />Increase <br />earnings per share<br />Repurchase shares<br />Pay dividends<br />Why do companies pay dividends?<br />
  6. 6. First Section<br />Attraction<br />Tax-differences<br />Institutions<br />Individual investors<br />and <br />institutions<br />Firm management<br />Monitoring<br />Tax advantage<br />
  7. 7. Second Section<br />1<br />Positive change to current permanent earnings <br />2<br />Dividends indicate current company performance<br />Cost minimization<br />
  8. 8. Third Section<br />1<br />2<br />Positively related to earning changes<br />Future abnormal earnings<br />Dividend changes relate to future profitability<br />
  9. 9. Difficulties and Next to Do<br />Opposite opinions<br />Lots of models<br />English professional definitions<br />Independent Thinking<br />
  10. 10. References<br />Allen, F., Bernardo, A.E. , and Welch, I. (2000) ‘A theory of dividends based on tax clienteles’, Journal of Finance, 55(6), pp. 2499-2536 EBSCO[Online]. Available at: http://www.ebscohost.com/<br />Benaritzi, S. Michealy, R. and Thaler, R. (2004) ‘Do changes in dividends signal the future or the past?’, Journal of Finance, 52(3), pp. 1007-1034 EBSCO[Online]. Available at: http://www.ebscohost.com/<br />Garrett, I. and Priestley, R. (2000) ‘Dividend behavior and dividend signaling’ The Journal of Financial and Quantitative Analysis, 35(2), pp. 173-189 EBSCO[Online]. Available at: http://www.ebscohost.com/<br />Nissim, D. and Ziv. A. (2001) ‘Dividend changes and future profitability’ Journal of Finance, 56(6), pp. 2111-2133 EBSCO[Online]. Available at: http://www.ebscohost.com/<br />
  11. 11. Thank You !<br />Daisi Wang Class 8<br />

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