Keith came to Australia to obtain his tertiary education in 1982. While he was studying his M.Com (Hons), he began working as a tutor and then as a lecturer in the School of Banking and Finance at the University of New South Wales. He joined the University of Technology, Sydney in 1992 and is involved in both undergraduate and postgraduate level courses.
Dividend reinvestment plans and capital structure decisions.
Asset pricing, investment decisions, dividend policy, capital structure and financing decisions.
© 2018, Emerald Publishing Limited. Purpose: The purpose of this paper is to examine the information content in the Standard & Poor (S&P) 500 index revision and its impact on the corporate bonds and earnings of the firms whose stocks are added to or deleted from the index. Design/methodology/approach: The paper uses panel regressions on a 13-year sample of the companies added and deleted from the S&P 500 index. Findings: The regression results on the bond yields and earnings show that analysts and investors draw positive (negative) information from Index additions (deletions) and adjust their expectations of the firm performance as well as the required rates of return on corporate bonds after index revisions. Research limitations/implications: The paper suggests that deletions from the Index have significantly negative impacts on corporate bonds and earnings performance of deleted firms while additions to the index do not have significant impacts on the bonds or realized earnings of added firms. Originality/value: This paper uses corporate bonds and earnings to test competing hypotheses proposed to explain the excess stock returns of index revision, including information content hypothesis and liquidity hypothesis. The results are consistent with the information content hypothesis and do not support the liquidity hypothesis.
Chan, KK, McColough, D & Skully, M 1996, 'Australian dividend reinvestment plans: An event study on discount rates', Applied Financial Economics, vol. 6, no. 6, pp. 551-561.
Chan, KK, McColough, D & Skully, M 1995, 'Dividend reinvesment plans in Australia', Global Finance Journal, vol. 6, no. 1, pp. 79-99.
Chan, KK, McColough, D & Skully, M 1993, 'Australia tax changes and dividend reinvestment announcement effects: A pre- and post-imputation study', Australian Journal of Management, vol. 18, no. 1, pp. 41-62.
Chan, K, Skully, MT & McCough, DW 1992, 'Australian Dividend Reinvestment Plans: The Announcement Effects of Differing Discount Rates'.
This paper provides Australian evidence of the comparative forecasting power of the three inflation models (interest rate, time series, and survey forecasts). In particular, it examines the rationality (in the Muthian sense) of the survey forecasts. The following results are obtained: first, the survey forecasts are rational; and, second, the survey has the highest forecasting power. © 1990, SAGE Publications. All rights reserved.
Chan, K.K., McColough, D. & Skully, M. 1995, 'Australian Imputation Tax System and Dividend Reinvestment Plans' in Ghosh, D.K. & Khaksari, S. (eds), Managerial Finance in the Corporate Economy, Routledge, UK, pp. 135-153.
Chan, K.K., McColough, D. & Skully, M. 1995, 'Do Dividend Reinvestment Plans Add Value?' in Gray, P.H. (ed), Research in International Business and Finance Volume 11B, Studies in the Financial Markets of the P, JAI Press, US, pp. 121-138.
Chan, K.K., McColough, D. & Skully, M. 1994, 'The announcement effects of discount dividend reinvestment plans in Australia', 10th Academy of International Business Southeast Asia Regional Conference, Beijing, China.
Chan, K.K., McColough, D. & Skully, M. 1993, 'The development of dividend reinvestment plans in Australia and their impact', 9th Academy of International Business West/Southeast Asia Regional Conference, Asia.
Chan, K.K., McColough, D. & Skully, M. 1992, 'Australian Tax Changes and Dividend Reinvestment Announcement Effects: A Pre- and Post-Imputation Study'.
This paper used an event study approach to examine the impact of dividend reinvestment plans on shareholders returns in the pre- and post-imputation environment. The daily share return behaviour indicated that the announcement to introduce DRP was received indifferntly by the market prior to the imputation, but was valued positively afterwards. The results support the suggestion that under imputation the optimal dividend policy is to distribute the maximum franked dividend and implement a DRP to retain cashflows.