THE VALUE OF REPUTATION ON THE FINANCIAL SIGNALS OF THE FIRM UNDER ASYMMETRICAL INFORMATION (DIVIDENDS).

This study analyzes the market's response to dividend increases of a sample of firms. Unlike most studies addressing dividend changes and the informational content of dividend hypothesis, this study incorporates financial signaling theory into the analysis. Specifically, the sample of firms studied were characterized by repeated or many dividend changes prior to the dividend change when market response is studied.