Liang, Hui; Moreau, Laura; Park, Jung Chul - In: Journal of Business Research 64 (2011) 10, pp. 1108-1115
This study examines the market's reaction to dividend omission announcements and finds that if dividends are skipped to preserve cash for good investments, investors do not necessarily regard the omission as negative information. Markets penalize firms for dividend omissions only in the absence...