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Cited by 938

The DOI matches its Crossref record; 38 of the 38 references it cites were found in a registry or an index.

Price Reactions to Dividend Initiations and Omissions: Overreaction or Drift?

MICHAELY, RONI, THALER, RICHARD H., WOMACK, KENT L.·1995·The Journal of Finance
DOI 10.1111/j.1540-6261.1995.tb04796.x
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Abstract

This article investigates market reactions to initiations and omissions of cash dividend payments. Consistent with prior literature we find that the magnitude of short‐run price reactions to omissions are greater than for initiations. In the year following the announcements, prices continue to drift in the same direction, though the drift following omissions is stronger and more robust. This post‐dividend initiation/omission price drift is distinct from and more pronounced than that following earnings surprises. A trading rule employing both samples earns positive returns in 22 out of 25 years. We find little evidence for clientele shifts in either sample.

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Crossref · 10.1111/j.1540-6261.1995.tb04796.x

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Metadata

Authors
MICHAELY, R., THALER, R. H., & WOMACK, K. L.
Venue
The Journal of Finance
Publisher
Wiley
Published
1995-06
Volume
50
Issue
2
Pages
573-608
ISSN
  • 0022-1082 (ISSN-L)
  • 1540-6261
DOI
10.1111/j.1540-6261.1995.tb04796.x
OpenAlex
W3125902854
Cited by
938
References
38
FWCI
22.78
Type
journal article
Language
en
Open access
closed

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CoChat. (2026). Citation check: Price Reactions to Dividend Initiations and Omissions: Overreaction or Drift? https://app.cochat.ai/papers/10.1111/j.1540-6261.1995.tb04796.x
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MICHAELY, R., THALER, R. H., & WOMACK, K. L. (1995). Price Reactions to Dividend Initiations and Omissions: Overreaction or Drift? The Journal of Finance. https://doi.org/10.1111/j.1540-6261.1995.tb04796.x

Data sources

Bibliographic data: Semantic Scholar, OpenAlex, Crossref.

Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.