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This study examines the market reaction when announcements of large dividend increases are made by more versus less rate‐regulated firms in the same industry. The insurance industry was chosen because property/liability insurers are rate‐regulated more than life/health insurers. The abnormal returns are positive and significant for all insurers but smaller than those found in previous cross‐sectional studies. Abnormal returns for the less rate‐regulated life/health insurers during the dividend increase announcement period are significantly greater than those of the more rate‐regulated property/liability insurers.

The purpose of this paper is to examine the Dickens et al. model of bank holding company dividend policy. They identified five explanatory factors in a sample of bank holding companies (BHCs). Banking companies typically pay larger dividends and more often than industrial firms. Investors often look at the dividends as being important return variables.

In this study, a sample of 99 firms with 2006 data from governmental reports and Yahoo is used in regression equations to test the relationship of the five identified variables with dividend yields. The analysis is extended to investigate non‐linearities between dividend yield and insider ownership.

The paper finds that the original model is robust, but not all variables keep their significance. Insider holdings have a non‐linear relationship with dividend yields.

The significant factors affecting bank dividend policy help dividend seeking investors find BHCs that return higher dividend yields.

This paper reveals a non‐linear link between insider holdings and dividend yields among BHCs.

In a recent article Aharony and Swary considered the synchronous nature of earnings and dividends announcements in examination of the information content of dividend hypothesis. They concluded that their results support the information content of dividends hypothesis—that announcements of changes in dividends provide information beyond that contained in quarterly earnings announcements. A shortcoming of the Aharony and Swary study is that it considers only dividend and earnings announcements that occur at least 11 trading days from each other. In fact, as their Table I indicates the majority of such pairs of announcements occur within ten days of each other. Further, approximately one‐half of their observations of earnings and dividends announcements are separated by at least 21 trading days (close to one calendar month). These considerations lead one to wonder how synchronous their announcements are and whether their results can be generalized to earnings and dividend announcements that actually occur in close proximity to each other.

The purpose of this paper is to discuss the stock price adjustment after a dividend distribution, allowing for different types of investors and market imperfections, including taxes and transaction costs.

An arbitrage model is developed to determine the possible equilibria for the stock price adjustment, after a dividend distribution. The approach is theoretical, providing general results.

The model shows that, in the presence of different types of investors, a unique equilibrium only exists in the absence of transaction costs. The allowance for market imperfections, such as taxes and transactions costs, implies that there is not a unique equilibrium for the level of stock price adjustment following a dividend distribution event, but rather there is much possible equilibrium. It is showed that the observation of abnormal trading volume around the dividend event may give us some insights on the identification of which investors are present in the market.

On future studies of the stock price adjustment after dividend distributions, it should be taken into account that there is no unique equilibrium.

The main contribution of this paper is to show that the existence of taxes and transaction costs precludes the determination of a unique equilibrium point for the stock price adjustment after a dividend distribution.

Since Ball and Brown's (1968) seminal paper on the association between unexpected changes in earnings and share prices, there have been an abundance of empirical studies that suggest that announcements of earnings and dividends do indeed convey new and useful information to capital market participants. Most of these studies, however, have examined the information effects of only earnings OR dividend announcements. They did not examine whether the share market evaluates each announcement with respect to the information contained in the other.

The purpose of this paper is to examine the relation between dividend policy and share price changes in the UK stock market.

Multiple regression analyses are used to explore the association between share price changes and both dividend yield and dividend payout ratio.

A positive relation is found between dividend yield and stock price changes, and a negative relation between dividend payout ratio and stock price changes. In addition, it is shown that a firm's growth rate, debt level, size and earnings explain stock price changes.

The paper supports the fact that dividend policy is relevant in determining share price changes for a sample of firms listed in the London Stock Exchange.

To the best of the authors' knowledge, this paper is the first to show that corporate dividend policy is a key driver of stock price changes in the UK.

The determinants of dividend policy are a continuing puzzle, as noted by Black (1976). In this paper we review the major issues in dividend policy and relate them to some of the themes explored in companion papers in this volume. The paper is divided into five sections. Section 2 surveys the literature on the information signalling properties of dividends. Section 3 discusses some tax issues related to dividend policy and section 4 draws on some agency costs explanations for dividend payments. The conclusion draws together the arguments and highlights some of the unresolved issues.

The purpose of this paper was to examine the long-run causal relations between share price and dividend in the Indian market.

Panel vector error correction model is estimated to examine the long-run causal relations between share price and dividend. Prior to this, panel unit root tests and panel cointegration tests are carried out to test the unit root properties of the data and test for the existence of long-run cointegrating relationship between the variables, respectively.

The results of empirical investigation reveal that there exists bi-directional long-run causality between share price and dividends.

For the chosen sample, data on share price are available only for limited years. This limits the time dimension of the sample. Hence, in the future, the analysis can be extended to cover longer time series.

The interplay between share prices and dividends needs to be given due consideration by firms while framing their policies. A change in dividend policy would have an effect on the market value of the firm; hence, firms need to frame dividend policy in such a way that it would enhance their market value. Similarly, investors need to take into consideration the influence of share prices and dividends on each other. While making investment decisions, they need to consider the dividend history of shares, as better dividends would lead to better share prices.

To the best of the authors' knowledge, this study is the first attempt in the Indian market to examine the long-run causal relations between share price and dividend. The results of this study would be helpful to the investors in taking wise investment decisions. It would also enable firms in formulating appropriate dividend policies.

The purpose of this paper is to investigate the views of chief financial officers (CFOs) of Iranian firms listed on the Tehran Stock Exchange about the factors influencing dividend policy in 2006. The paper aims to update and extend previous research on dividend policy to capture the determinants of the dividend policy of Iranian firms.

Survey instruments were used to identify the factors that CFOs consider in formulating dividend policy, based on both theoretical and empirical works on dividends, to identify the factors that are most important in dividend policy of firms.

The findings show that the most important determinants of a firm's dividend policies are the stability of cash flow, the availability of profitable investment opportunities, and stability of profitability. Also, industry type appeared to influence the importance that respondents placed on one determinant of dividend policy.

It is likely that the firms that did not respond on time may show a non‐response bias. Despite lacking normal precautionary steps to increase the response rate, non‐response bias may affect the findings. Another limitation of the survey methodology was that it measures beliefs and not necessarily actions. Therefore, caution should be taken in generalizing the findings.

The findings have implications for CFOs in formulating dividend policy.

The paper updates and extends previous research on dividend policy to capture the determinants of the dividend policy of Iranian firms.

This paper aims to examine the determinants of the dividend distribution policy in a banking setting.

Using a sample of 48 Islamic banks and 94 conventional banks from 15 Islamic countries over a period spanning from 2012 to 2019, we document the effect of board gender diversity, executive director profile and governance mechanisms on dividend payment decisions. We also analyze the moderating effect of Islamic banks on the relationship between gender diversity and dividend policy.

We find new evidence on the role of women directors in determining dividend distribution policy and confirm the risk aversion hypothesis, hence contributing to the ongoing debate on gender diversity literature. Our results show that the moderating role of Islamic banks is effective only for small banks.

Our findings have practical implications for shareholders, managers and financial analysts as they suggest rationalizing dividend distribution strategies.

Our study contributes to the growing body of knowledge on dividend policy, gender diversity and Islamic banks.