The Journal of Finance

Corporate Dividends and Seasoned Equity Issues: An Empirical Investigation

Published: 03/01/1992   |   DOI: 10.1111/j.1540-6261.1992.tb03983.x

CLAUDIO F. LODERER, DAVID C. MAUER

This paper investigates whether managers rely on dividends to obtain a higher price in a stock offering and whether the stock price reaction to dividend and offering announcements justifies such a coordination. The evidence does not support either conjecture. Issuing firms are not more likely to pay or increase dividends than nonissuing forms. Moreover, there is little evidence that firms time stock offering announcements right after dividend declarations to benefit from the attendant information disclosure. The analysis of dividend and stock offering announcement effects suggests few if any benefits from linking dividend and stock offering announcements.

Corporate Bankruptcy and Managers' Self‐Serving Behavior

Published: 09/01/1989   |   DOI: 10.1111/j.1540-6261.1989.tb02639.x

CLAUDIO F. LODERER, DENNIS P. SHEEHAN

We investigate whether insiders of bankrupt firms hold less stock or reduce their stockholdings compared to what we observed for insiders of similar firms that do not go bankrupt. We find little evidence of such time‐series and cross‐sectional differences in spite of the fact that the stock value of bankrupt firms falls by more than ninety percent in the five years preceding bankruptcy. One implication of our results is that the amount of stock owned and the magnitude of the trades undertaken by corporate insiders of both bankrupt and nonbankrupt firms appear to provide no information about firm value.