TY  - JOUR
AU  - Kane,Alex
AU  - Lee,Young Ki
AU  - Marcus,Alan J.
TI  - Earnings and Dividend Announcements is there a Corroboration Effect?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1248
PY  - 1985
Y2  - June 1985
UR  - http://www.nber.org/papers/w1248
L1  - http://www.nber.org/papers/w1248.pdf
N1  - Author contact info:
Alex Kane
Graduate School of IRPS/D-019
University of California, San Diego
La Jolla, CA   92093-0519
Tel: 619/534-5969
E-Mail: akane@ucsd.edu

Young Ki Lee
E-Mail: yklee@kdischool.ac.kr

Alan Marcus
Finance Department
Fulton 334
Boston College
Chestnut Hill, MA  02467
Tel: 617-552-2767
E-Mail: alan.marcus@bc.edu
AB  - We examine abnormal stock returns surrounding contemporaneous earnings and dividend announcements in order to determine whether investors evaluate the two announcements in relation to each other.We find that there is a statistically significant interaction effect.The abnormal return corresponding to any earnings or dividend announcement depends upon the value of the other announcement. This evidence suggests the existence of a corroborative relationship between the two announcements. Investors give more credence to unanticipated dividend increases or decreases when earnings are also above or below expectations, and vice versa.
ER  -