Stock distributions can affect the number of outstanding shares and the equity structure of a firm. From a neoclassical perspective, neither should have any effect on market value. However, a respectable number of empirical studies disclose overwhelming evidence that stock markets have a significantly positive reaction to the announcement of stock distributions.
Despite the broad consensus about the positive market reaction, the possible causes are still debated. Focusing on stock dividends, which are a special type of stock distribution, this study revisits this puzzle and provides deeper insight into the economic ramifications of changes in the equity structure.
Reihe
Sprache
Verlagsort
Illustrationen
38
38 Tab., 14 Abb.; 160 S., 14 s/w Abbildungen, 38 s/w Tabellen
Dateigröße
ISBN-13
978-3-89644-687-9 (9783896446879)
DOI
10.3790/978-3-89644-687-9
Schweitzer Klassifikation
I Introduction
II Regulatory Framework
Basic Conditions - Further Legal Implications - Conclusions
III Theory and Empirical Evidence
Theoretical Considerations on Stock Distributions - Empirical Evidence
IV Data and Methodology
Descriptive Data - Event Study Design - Proxy for Jensen's Free Cash Flow
V Data Analysis
Announcement Effect of Stock Dividends - Test of the Free Cash Flow Hypothesis
VI Conclusions
Appendices
References
