@article{8a48627047854f5fbe244ca052b65788,
title = "Earnings and dividend informativeness when cash flow rights are separated from voting rights",
abstract = "We contrast the informativeness of earnings and dividends for firms with dual class and single class ownership structures. Results of both across-sample tests (which explicitly control for factors influencing ownership structure and informativeness) and within-sample tests (which implicitly control for factors associated with ownership structure) show that earnings are generally less informative, and dividends are at least as (if not more) informative, for dual class firms. We interpret these results as suggesting that the net effect of dual class structures is to reduce the credibility of earnings and to enhance the salience of dividends as measures of performance.",
keywords = "Dividends, Dual class, Earnings",
author = "Jennifer Francis and Katherine Schipper and Linda Vincent",
note = "Funding Information: This research was supported by the Fuqua School of Business, Duke University and the Kellogg School of Management, Northwestern University. The views expressed in this paper are those of the authors and do not represent positions of the Financial Accounting Standards Board. Positions of the Financial Accounting Standards Board are determined only after extensive due process and deliberation. We thank Alan Fu, George Minkovsky, and Li Xiu for excellent research assistance. We appreciate the comments of an anonymous referee, Bill Beaver, Walt Blacconiere, Alex Butler, Robert Chirinko, Antonio Davilla, Mara Faccio, Maureen McNichols, Jim Patell, Stephen Taylor, Jim Wahlen, Ross Watts, T.J. Wong, Kristina Zvinakis, and workshop participants at the 2002 Big Ten Research Conference, Duke University, Indiana University, Louisiana State University, Ohio State University, Stanford University, University of Delaware, University of Illinois at Chicago, and University of Technology, Sydney. ",
year = "2005",
month = jun,
doi = "10.1016/j.jacceco.2005.01.001",
language = "English (US)",
volume = "39",
pages = "329--360",
journal = "Journal of Accounting and Economics",
issn = "0165-4101",
publisher = "Elsevier",
number = "2",
}