The Predictive Content of Earnings Forecasts and Dividends

STEPHEN H. PENMAN

doi:10.1111/j.1540-6261.1983.tb02290.x

The Predictive Content of Earnings Forecasts and Dividends

STEPHEN H. PENMAN

Columbia Business School

Research output: Contribution to journal › Article › peer-review

72 Citations (Scopus)

Abstract

This paper compares the properties of dividend announcements and management earnings forecasts as predictors of earnings and firm value. First, the two predictors are compared on the basis of their ability to predict earnings. Then the information they convey about firm value is assessed by comparison of the performance of investment strategies based on values of the two predictors. Finally, the effects of dividend announcements on stock prices are considered. 1983 The American Finance Association

Original language	English
Pages (from-to)	1181-1199
Number of pages	19
Journal	Journal of Finance
Volume	38
Issue number	4
DOIs	https://doi.org/10.1111/j.1540-6261.1983.tb02290.x
Publication status	Published - Sept 1983

ASJC Scopus Subject Areas

Accounting
Finance
Economics and Econometrics

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10.1111/j.1540-6261.1983.tb02290.x

Cite this

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The Predictive Content of Earnings Forecasts and Dividends

Abstract

ASJC Scopus Subject Areas

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