International Journal of Social Science & Economic Research
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Title:
THE RELATIONSHIP BETWEEN DIVIDEND REPUTATION AND STOCK RETURNS: AN APPLICATION OF ORDERED LOGISTIC REGRESSION

Authors:
WANG CHIEN JEN and LIU ZI YU

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WANG CHIEN JEN and LIU ZI YU
Associate professor of International Trade Dept. International Trade Dept.
Takming University of Science and Technology, Taiwan

MLA 8
JEN, WANG CHIEN, and LIU ZI YU. "THE RELATIONSHIP BETWEEN DIVIDEND REPUTATION AND STOCK RETURNS: AN APPLICATION OF ORDERED LOGISTIC REGRESSION." Int. j. of Social Science and Economic Research, vol. 7, no. 3, Mar. 2022, pp. 506-514, doi.org/10.46609/IJSSER.2022.v07i03.003. Accessed Mar. 2022.
APA 6
JEN, W., & YU, L. (2022, March). THE RELATIONSHIP BETWEEN DIVIDEND REPUTATION AND STOCK RETURNS: AN APPLICATION OF ORDERED LOGISTIC REGRESSION. Int. j. of Social Science and Economic Research, 7(3), 506-514. Retrieved from doi.org/10.46609/IJSSER.2022.v07i03.003
Chicago
JEN, WANG CHIEN, and LIU ZI YU. "THE RELATIONSHIP BETWEEN DIVIDEND REPUTATION AND STOCK RETURNS: AN APPLICATION OF ORDERED LOGISTIC REGRESSION." Int. j. of Social Science and Economic Research 7, no. 3 (March 2022), 506-514. Accessed March, 2022. doi.org/10.46609/IJSSER.2022.v07i03.003.

References
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ABSTRACT:
This study explores the improvement in dividend reputation of Taiwan’s listed companies and analyzes the association between firm’s dividend reputation and future stock returns. We employed listed companies adopting the dividend policy for five or seven consecutive years in Taiwan and maintaining or increasing dividend yield to define the building up of dividend reputation. Moreover, we examine the correlation between dividend reputation and expected stock returns. This study found out that Taiwan’s mature listed companies with higher dividend yields and investment opportunities have significant correlation with firm dividend reputation. Meanwhile, listed companies that have paid non-decreasing dividends for at least five years significantly associated with higher and more stable firm stock returns than that of seven years paying non-decreasing dividends.

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