Jeong-Bon Kim

Jul 4, 2024 | onlinelibrary.wiley.com | Jeong-Bon Kim |Le Luo |Hong Xie

Using a large sample of US firms over the period of 1991–2015, we examine the economic benefits of paying dividends. We find that dividend payments mitigate stock price crash risk. We show that dividend payments reduce bad news hoarding (overinvestments) while bad news hoarding (overinvestments) is (are) positively associated with stock price crash risk, suggesting that curbing bad news hoarding and curtailing overinvestments are two channels through which dividends mitigate crash risk.

Sep 28, 2023 | mdpi.com | Karel Hrazdil |Jeong-Bon Kim |Xin Li

2. Literature and HypothesesThe Division of Enforcement (DoE) of the SEC recommends and carries out investigations into potential securities law violations, such as the misrepresentation or omission of material information, manipulation of the market prices of securities, insider trading, or other fraudulent acts in the issuance of or reporting on public securities.