An investigation into the financial characteristics of dividend initiating firms

Payne, Bruce C.; Boudreaux, Denis O.; Duggar, Jan Warren

doi:10.1007/bf02920109

Cited by 2 publications

(3 citation statements)

References 11 publications

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“…MDA is appropriate when the dependent variable is nominally or ordinally measured and the predictive variables are metrically measured. In addition to its use in the Altman study to predict corporate bankruptcy, other early studies used MDA to, predict financially distressed property-liability insurance firms (Trieschmann and Pinches 1973), growth (Payne 1993), and the failure of small businesses (Edmister 1982). This study also employs nominally measured dependent variables and metrically measured predictive variables.…”

Section: Methodsmentioning

confidence: 98%

“…Further, models to predict changes in the firm's value as a result of those announcements have been developed by Lintner (1956), Fama and Babiak (1968), and Kolb (1981). Payne et al (Payne et al, 1992) found a unique profile of financial characteristics for those firms that initiated new dividends. That work however, ignored the macroeconomic background in which those announcements were made.…”

Section: Introductionmentioning

confidence: 98%

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On the financial characteristics of firms that initiated new dividends during a period of economic recession and financial market turmoil

Payne¹

2009

J Econ Finan

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Section: Methodsmentioning

confidence: 98%

Section: Introductionmentioning

confidence: 98%

On the financial characteristics of firms that initiated new dividends during a period of economic recession and financial market turmoil

Payne¹

2009

J Econ Finan

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“…MDA is appropriate when the dependent variable is nominally or ordinally measured and the predictive variables are intervally measured. In addition to its use in the Altman study to predict corporate bankruptcy, other early studies used MDA to, predict financially distressed property-liability insurance firms (Trieschmann and Pinches, 1973), growth (Payne, 1993), and the failure of small businesses (Edmister, 1982). This study also employs nominally measured dependent variables and intervally measured predictive variables.…”

Section: Methodsmentioning

confidence: 99%

On The Financial Characteristics Of Firms That Have Achieved The Highest Levels Of Accuracy In Earnings Predictability

Payne

Daghestani

Rumore

2011

JBER

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The value of a company is said to be a function of the future earnings or cash flows the company will produce discounted at a rate commensurate with risks associated with those cash flows. The subject of earnings predictability or the lack of reliable forecasts has been of interest to academic researchers and financial managers for years. Value Line publishes weekly, a ranking of the reliability of earnings predictions for every firm in their database. The higher the Value Line ranking for earnings predictability, the more likely they would recommend it as a safe investment. Earnings predictability is then, simply one of their important measures of potential value and safety.  The purpose of this study is to provide a financial analysis of those firms described by Value Line as having the most reliable levels of earnings predictability in their database. Specifically, the analysis will test for significant differences in the financial profiles of those firms that achieved the highest Value Line ratings for earnings predictability, and companies selected at random from the same industries.  A unique financial profile is established for the highest rated group, and it is suggested that the profile may be used to identify firms that because of their financial nature are capable of producing the most accurate sales forecasts, and earnings predictability. As in previous studies of this nature Multiple Discriminant Analysis is used.

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An investigation into the financial characteristics of dividend initiating firms

Cited by 2 publications

References 11 publications

On the financial characteristics of firms that initiated new dividends during a period of economic recession and financial market turmoil

On the financial characteristics of firms that initiated new dividends during a period of economic recession and financial market turmoil

On The Financial Characteristics Of Firms That Have Achieved The Highest Levels Of Accuracy In Earnings Predictability

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