Australian Dividend Reinvestment Plans: The Announcement Effects of Differing Discount Rates
Posted: 15 Oct 2000
Date Written: September 1992
Abstract
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 support the Hansen, Pinkerton and Keown (1985) proposition of DRP wealth redistribution neutrality.
JEL Classification: G32
Suggested Citation: Suggested Citation
Chan, Keith and Skully, Michael T. and McCough, Damien W., Australian Dividend Reinvestment Plans: The Announcement Effects of Differing Discount Rates (September 1992). Available at SSRN: https://ssrn.com/abstract=5719
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