Dividend reinvestment plans (DRPs) were introduced in Australia in 1982 primarily to help shareholders purchase new shares without transaction costs. Variants of the basic DRP were soon developed for taxation reasons to allow for income streaming. This paper examines the basic characteristics...

This event study examined the effect on shareholder returns of companies announcing their intention to introduce Dividend Reinvestment Plan (DRPs) offering a 10%, 7.5% and 5% discount. Overall the plans were received positively by the market. Also, the various discount sample results appear to...