The impact of dividend payments on shareholders' wealth : evidence from the Vector Error Correction Model

dc.contributor.authorDe Wet, Johannes H.v.H. (Johannes Hendrik van Heerden)
dc.contributor.authorMpinda, Mvita Freddy
dc.contributor.emailjohannes.dewet@up.ac.zaen_US
dc.date.accessioned2014-07-08T08:02:21Z
dc.date.available2014-07-08T08:02:21Z
dc.date.issued2013-11
dc.description.abstractTo date, a vast body of research has been established on dividend policy. However, little research has been done on the impact of dividend payments on shareholders’ wealth while considering the short- and long-run effects. This study is based on a sample of 46 companies listed on the Johannesburg Securities Exchange (JSE) for the period 1995 to 2010. The Vector Error Correction Model (VECM) was used to describe the short-run and long-run dynamics or the adjustment of the co-integrated variables toward their equilibrium values. Results indicate that in the long run, dividend yield is positively related to market price per share, while earnings per share do not have a significant impact on the market price per share.en_US
dc.description.librarianam2014en_US
dc.description.urihttp://journals.cluteonline.com/index.php/IBERen_US
dc.identifier.citationDe Wet, J & Mpinda, M 2013, 'The impact of dividend payments on shareholders' wealth : evidence from the Vector Error Correction Model', International Business and Economics Research Journal, vol. 12, no. 11, pp. 1451-1466.en_US
dc.identifier.issn1535-0754 (print)
dc.identifier.issn2157-9393 (online)
dc.identifier.urihttp://hdl.handle.net/2263/40621
dc.language.isoenen_US
dc.publisherClute Institute for Academic Researchen_US
dc.rightsClute Institute for Academic Researchen_US
dc.subjectDividend paymentsen_US
dc.subjectMarket price per shareen_US
dc.subjectShareholders’ wealthen_US
dc.subjectRelevance and irrelevance theoryen_US
dc.subjectGranger causality modelen_US
dc.subjectJohansson co-integration testen_US
dc.subjectVector Error Correction Model (VECM)en_US
dc.subjectEarnings per share (EPS)en_US
dc.titleThe impact of dividend payments on shareholders' wealth : evidence from the Vector Error Correction Modelen_US
dc.typeArticleen_US

Files

Original bundle

Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
DeWet_Impact_2013.pdf
Size:
296.14 KB
Format:
Adobe Portable Document Format
Description:
Article

License bundle

Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed upon to submission
Description: