Australian Dividend Reinvestment Plans: The Announcement Effects of Differing Discount Rates

Posted: 15 Oct 2000

See all articles by Keith Chan

Keith Chan

University of Technology Sydney (UTS) - School of Finance and Economics; Financial Research Network (FIRN)

Michael T. Skully

Monash University - Department of Banking and Finance; Financial Research Network (FIRN)

Damien W. McCough

affiliation not provided to SSRN

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

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

Keith Chan

University of Technology Sydney (UTS) - School of Finance and Economics ( email )

Haymarket
Sydney, NSW 2007
Australia
+61 2 9514 3638 (Phone)
+61 2 9514 3636 (Fax)

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

Michael T. Skully (Contact Author)

Monash University - Department of Banking and Finance ( email )

900 Dandenong Road
Caulfield East, Victoria 3145
Australia
+61 3 9903 2407 (Phone)
+61 3 9903 1443 (Fax)

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

Damien W. McCough

affiliation not provided to SSRN

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