Performance Signalling of Dividend Policy on the NewConnect Market

Marek Pauka, Martyna Żyła


The aim of the paper was to give evidence whether changes of dividends could be considered as signals forecasting changes in future financial results. The sample consists of 42 companies listed on the NewConnect market in the years 2007–2016, paying regular dividends for at least 3 years. Using linear regression models, we show that dividend changes have a weak but positive effect on revenues changes, but they are insignificant when explaining changes in operating performance and net income. The paper fills a gap in empirical research on the Polish stock market, and especially the signalling function of dividends on NewConnect, which is characterised by a high degree of information asymmetry, has been examined for the first time.


dividend changes; future earnings; Poland

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Data publikacji: 2018-02-27 16:38:15
Data złożenia artykułu: 2017-05-22 23:45:55


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