Stock Dividends in Germany

An Empirical Analysis

2015. 38 Tab., 14 Abb.; 160 S.
Available as
69,90 €
ISBN 978-3-89673-687-1
available
62,90 €
ISBN 978-3-89644-687-9
available
Price for libraries: 80,00 € [?]

Description

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.

Overview

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

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