Predictable Corporate Distributions and Stock Returns

Review of Financial Studies, Forthcoming

67 Pages Posted: 1 Jul 2013 Last revised: 25 Nov 2014

See all articles by Hendrik Bessembinder

Hendrik Bessembinder

Arizona State University

Feng Zhang

University of Utah - Department of Finance

Date Written: November 24, 2014


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.

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

JEL Classification: G14, G35

Suggested Citation

Bessembinder, Hendrik (Hank) and Zhang, Feng, Predictable Corporate Distributions and Stock Returns (November 24, 2014). Review of Financial Studies, Forthcoming, Available at SSRN: or

Hendrik (Hank) Bessembinder (Contact Author)

Arizona State University ( email )

PO Box 873906
Tempe, AZ 85207
United States

Feng Zhang

University of Utah - Department of Finance ( email )

David Eccles School of Business
Salt Lake City, UT 84112-9303
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
PlumX Metrics