TY  - BOOK
AU  - How,Janice C.Y.
AU  - Ngo,Kian
AU  - Verhoeven,Peter
TI  - Dividend initiations and long-run IPO performance
SN  - 03128962
AV  - HD31 AUS 
PY  - 2011///
CY  - Los Angeles
PB  - Sage
KW  - Dividend initiation
KW  - Free cash flows
KW  - IPOs
N2  - Dividend initiations are an economically significant event that has important implications for a firm’s future financial capacity. Given the market’s expectation of a consistent payout, managers of IPO firms must approach the initial dividend decision cautiously. We compare the long-run performance of IPO firms that initiated a dividend with that of similarly matched non-payers, and find robust results that firms which initiated a dividend perform significantly better up to five years after the initiation date. Further tests show that the post-initiation firm performance is explained mostly by dividend theory of signalling rather than free cash flow
UR  - https://doi.org/10.1177/0312896211405569
ER  -