Dividend policy, signaling, and discounts on closed-end funds

• 成果类型: Article
• 署名作者: Johnson, Shane A.; Lin, Ji-Chai; Song, Kyojik Roy
• 署名单位: Texas A&M University System; Texas A&M University College Station; Mays Business School; Louisiana State University System; Louisiana State University; Sungkyunkwan University (SKKU)
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2005.08.001
• 发表日期: 2006
• 页码: 539-562
• 关键词: dividend policy; signaling; closed-funds; COMPENSATION

摘要

We test the predictions of dividend signaling models using closed-end equity funds that adopt explicit policies committing them to pay minimum dividend yields. These policies represent deliberate attempts to reduce share price undervaluation relative to NAV. Funds that adopt minimum dividend policies experience reductions in their share price discounts, trade at smaller discounts than other funds, earn greater excess returns following policy adoption, and their managers survive longer than other managers do. The results are broadly consistent with the predictions of dividend signaling models, and suggest that high quality closed-end funds can reduce undervaluation via dividend policy. (c) 2006 Elsevier B.V. All rights reserved.