Abstract

http://ssrn.com/abstract=2287642
 


 



Predictable Corporate Distributions and Stock Returns


Hendrik Bessembinder


University of Utah - Department of Finance

Feng Zhang


University of Utah - Department of Finance

November 24, 2014

Review of Financial Studies, Forthcoming

Abstract:     
Corporate managers frequently announce corporate distributions, including stock splits, stock dividends, special dividends, and increases in regular dividends, on the anniversary of a like announcement at the same firm. The market appears to not fully appreciate the implications of current distributions for future distributions and stock returns, as a simple strategy that involves purchasing firms with high predicted probabilities of distribution announcements earns significant abnormal monthly returns. These results are distinct from previously documented return regularities related to regular earnings and dividend announcements and return seasonality.

Number of Pages in PDF File: 67

Keywords: stock dividends, stock splits, special dividends, dividend increases, predictability, return anomaly

JEL Classification: G14, G35

Accepted Paper Series





Download This Paper

Date posted: July 1, 2013 ; Last revised: November 25, 2014

Suggested Citation

Bessembinder, Hendrik and Zhang, Feng, Predictable Corporate Distributions and Stock Returns (November 24, 2014). Review of Financial Studies, Forthcoming. Available at SSRN: http://ssrn.com/abstract=2287642 or http://dx.doi.org/10.2139/ssrn.2287642

Contact Information

Hendrik (Hank) Bessembinder (Contact Author)
University of Utah - Department of Finance ( email )
David Eccles School of Business
Salt Lake City, UT 84112
United States
Feng Zhang
University of Utah - Department of Finance ( email )
David Eccles School of Business
Salt Lake City, UT 84112-9303
United States
Feedback to SSRN


Paper statistics
Abstract Views: 633
Downloads: 182
Download Rank: 99,681

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 0.344 seconds