Stock distributions and the Retained Earnings Hypothesis revisited
AffiliationUniv Arizona, Eller Coll Management
MetadataShow full item record
CitationHeavilin, J. E., & Songur, H. (2019). Stock distributions and the Retained Earnings Hypothesis revisited. Finance Research Letters, 30, 240-245.
JournalFinance Research Letters
Rights© 2018 Elsevier Inc. All rights reserved.
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AbstractLarge stock distributions may be accounted for as stock splits or stock dividends. The Retained Earnings Hypothesis (REH) suggests that the latter method of accounting signals improving future cash flows, but prior evidence is mixed and the debate is still open. We use a large sample of stock distribution and document economically significant evidence consistent with the REH which helps resolve the open debate.
Note24 month embargo; available online 4 October 2018.
VersionFinal accepted manuscript