Underwriting of Australian dividend reinvestment plans

Mathew Abraham; James Lau; Alastair Marsden

doi:10.1142/S021909151950019X

Underwriting of Australian dividend reinvestment plans

Mathew Abraham^*, James Lau, Alastair Marsden

^*Corresponding author for this work

Department of Accounting and Corporate Governance

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

1 Citation (Scopus)

Abstract

This study examines the decision to underwrite dividend reinvestment plans (DRPs) by Australian listed firms over the sample period 1995-2013. We find that the decision to underwrite a DRP for non-financial firms is negatively related to the level of franking credits attached to dividends, but positively related to the leverage of the firm and the discount for new shares issued in lieu of dividends. Non-financial and financial firms that are larger in size are more likely to underwrite their DRP. Lastly, underwriting of DRPs decreased with the onset of and subsequent to the height of the global financial crisis.

Original language	English
Article number	1950019
Pages (from-to)	1-26
Number of pages	26
Journal	Review of Pacific Basin Financial Markets and Policies
Volume	22
Issue number	3
DOIs	https://doi.org/10.1142/S021909151950019X
Publication status	Published - Sept 2019

Keywords

discount new shares
Dividend reinvestment plans
underwriting

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10.1142/S021909151950019X

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abstract = "This study examines the decision to underwrite dividend reinvestment plans (DRPs) by Australian listed firms over the sample period 1995-2013. We find that the decision to underwrite a DRP for non-financial firms is negatively related to the level of franking credits attached to dividends, but positively related to the leverage of the firm and the discount for new shares issued in lieu of dividends. Non-financial and financial firms that are larger in size are more likely to underwrite their DRP. Lastly, underwriting of DRPs decreased with the onset of and subsequent to the height of the global financial crisis.",

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AB - This study examines the decision to underwrite dividend reinvestment plans (DRPs) by Australian listed firms over the sample period 1995-2013. We find that the decision to underwrite a DRP for non-financial firms is negatively related to the level of franking credits attached to dividends, but positively related to the leverage of the firm and the discount for new shares issued in lieu of dividends. Non-financial and financial firms that are larger in size are more likely to underwrite their DRP. Lastly, underwriting of DRPs decreased with the onset of and subsequent to the height of the global financial crisis.

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Underwriting of Australian dividend reinvestment plans

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