@article{ART002169227,
author={Tianyu Zhu and Guohua Ma and Xu-Shen Zhou},
title={Weighing the Evidence of Dividend Initiations},
journal={Global Business and Finance Review},
issn={1088-6931},
year={2011},
volume={16},
number={1},
pages={31-42}
}

TY - JOUR
AU - Tianyu Zhu
AU - Guohua Ma
AU - Xu-Shen Zhou
TI - Weighing the Evidence of Dividend Initiations
T2 - Global Business and Finance Review
JO - Global Business and Finance Review
PY - 2011
VL - 16
IS - 1
PB - 사람과세계경영학회
SP - 31
EP - 42
SN - 1088-6931
AB - This paper analyzes post-event stock performance based on the strength and the weight of evidence of dividend initiations. The strength refers to how extreme the evidence is; the weight refers to how credible the evidence is. Griffin and Tversky’s (1992) experiments show that people are underconfident when presented with low strength and high weight information and overconfident with high strength and low weight information. This study shows that Griffin and Tversky’s results extend to dividend initiation as well. Portfolios with high strength and low weight overreact to dividend announcement, while portfolios with low strength and high weight underreact. The empirical results in this paper show that the strength-weight model can explain the underreaction-overreaction puzzle and suggests that psychological biases may impact stock performance.
KW - Dividend initiations, Stock performance, Underreaction-overreaction puzzle
DO -
UR -
ER -

Tianyu Zhu, Guohua Ma and Xu-Shen Zhou. 2011, "Weighing the Evidence of Dividend Initiations", Global Business and Finance Review, vol.16, no.1 pp.31-42.

Tianyu Zhu, Guohua Ma, Xu-Shen Zhou "Weighing the Evidence of Dividend Initiations" Global Business and Finance Review 16.1 pp.31-42 (2011) : 31.

Tianyu Zhu, Guohua Ma, Xu-Shen Zhou. Weighing the Evidence of Dividend Initiations. 2011; 16(1), 31-42.

Tianyu Zhu, Guohua Ma and Xu-Shen Zhou. "Weighing the Evidence of Dividend Initiations" Global Business and Finance Review 16, no.1 (2011) : 31-42.

Tianyu Zhu; Guohua Ma; Xu-Shen Zhou. Weighing the Evidence of Dividend Initiations. Global Business and Finance Review, 16(1), 31-42.

Tianyu Zhu; Guohua Ma; Xu-Shen Zhou. Weighing the Evidence of Dividend Initiations. Global Business and Finance Review. 2011; 16(1) 31-42.

Tianyu Zhu, Guohua Ma, Xu-Shen Zhou. Weighing the Evidence of Dividend Initiations. 2011; 16(1), 31-42.

Tianyu Zhu, Guohua Ma and Xu-Shen Zhou. "Weighing the Evidence of Dividend Initiations" Global Business and Finance Review 16, no.1 (2011) : 31-42.