What question did this study set out to answer?

To examine the signaling roles of corporate dividend announcements, ordinary income, and extraordinary accounting items within a capital market equilibrium framework.

January 1, 1978Journal of Accounting Research

Corporate Signaling, External Accounting, and Capital Market Equilibrium: Evidence on Dividends, Income, and Extraordinary Items

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Authors

NGNicholas J. GonedesUniversity of Chicago

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Implication

Empirical evaluation reveals differential signaling roles of dividends and accounting items in capital markets, indicating how public disclosures shape market equilibrium.

Key Points

To examine the signaling roles of corporate dividend announcements, ordinary income, and extraordinary accounting items within a capital market equilibrium framework.
Evaluated market responses to corporate financial announcements, specifically focusing on dividend adjustments, ordinary income disclosures, and extraordinary accounting items.
Analyzed price adjustments and information transmission across public equity markets to assess the presence and nature of signaling equilibria.
Financial disclosures such as dividend adjustments and net income numbers convey distinct informational signals regarding managerial expectations and firm value.
Market equilibrium reflects differential pricing reactions to regular accounting income relative to transitory or extraordinary financial items.

Cite This Study

Nicholas J. Gonedes (1978) studied this question.

synapsesocial.com/papers/6a125b158edbaba0bf671713 https://doi.org/10.2307/2490411

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Implication

Empirical evaluation reveals differential signaling roles of dividends and accounting items in capital markets, indicating how public disclosures shape market equilibrium.

Corporate Signaling, External Accounting, and Capital Market Equilibrium: Evidence on Dividends, Income, and Extraordinary Items

Discussion

Member takes

Implication

Key Points

Cite This Study

Corporate Signaling, External Accounting, and Capital Market Equilibrium: Evidence on Dividends, Income, and Extraordinary Items

Discussion

Member takes

Implication

Key Points

Cite This Study

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