Dividend clientele, new insights, and new questions: the Brazilian case
Autor(a) principal: | |
---|---|
Data de Publicação: | 2009 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | RAE (Online) |
Texto Completo: | http://old.scielo.br/scielo.php?script=sci_arttext&pid=S1676-56482009000100002 |
Resumo: | This paper analyzes the dividend clientele effect and the signaling hypothesis in the Brazilian stock market between 1996 and 2000. During this period, the dividend tax was zero and the capital gains tax varied between zero and 10%. Brazilian firms face two information regimes, which allow us to test the signaling hypothesis. From a sample of 394 observations studied, 39% show a first ex-dividend day stock price higher than the price on the last cum-dividend day. The market price is higher for unanticipated dividends but, even with pre-announced dividends, stock prices are higher than the expected level, which is inconsistent with the clientele hypothesis. We also find evidence of a positive abnormal volume around the unanticipated dividend date, which is consistent with the signaling hypothesis, but no abnormal trading volume around pre-announced dividend dates. Our findings are inconsistent with the clientele hypothesis but provide support for the signaling hypothesis. |
id |
FGV-11_68c8e50c4631267338074fa66798947f |
---|---|
oai_identifier_str |
oai:scielo:S1676-56482009000100002 |
network_acronym_str |
FGV-11 |
network_name_str |
RAE (Online) |
repository_id_str |
|
spelling |
Dividend clientele, new insights, and new questions: the Brazilian caseDividendstaxesclientelesignalingcapital marketsThis paper analyzes the dividend clientele effect and the signaling hypothesis in the Brazilian stock market between 1996 and 2000. During this period, the dividend tax was zero and the capital gains tax varied between zero and 10%. Brazilian firms face two information regimes, which allow us to test the signaling hypothesis. From a sample of 394 observations studied, 39% show a first ex-dividend day stock price higher than the price on the last cum-dividend day. The market price is higher for unanticipated dividends but, even with pre-announced dividends, stock prices are higher than the expected level, which is inconsistent with the clientele hypothesis. We also find evidence of a positive abnormal volume around the unanticipated dividend date, which is consistent with the signaling hypothesis, but no abnormal trading volume around pre-announced dividend dates. Our findings are inconsistent with the clientele hypothesis but provide support for the signaling hypothesis.Fundação Getulio Vargas/Escola de Administração de Empresas de São Paulo2009-06-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersiontext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S1676-56482009000100002RAE eletrônica v.8 n.1 2009reponame:RAE (Online)instname:Fundação Getulio Vargas (FGV)instacron:FGV10.1590/S1676-56482009000100002info:eu-repo/semantics/openAccessProcianoy,Jairo LaserVerdi,Rodrigo S.eng2009-04-06T00:00:00Zoai:scielo:S1676-56482009000100002Revistahttps://www.scielo.br/j/rae/PRIhttps://old.scielo.br/oai/scielo-oai.phprae@fgv.br2178-938X0034-7591opendoar:2009-04-06T00:00RAE (Online) - Fundação Getulio Vargas (FGV)false |
dc.title.none.fl_str_mv |
Dividend clientele, new insights, and new questions: the Brazilian case |
title |
Dividend clientele, new insights, and new questions: the Brazilian case |
spellingShingle |
Dividend clientele, new insights, and new questions: the Brazilian case Procianoy,Jairo Laser Dividends taxes clientele signaling capital markets |
title_short |
Dividend clientele, new insights, and new questions: the Brazilian case |
title_full |
Dividend clientele, new insights, and new questions: the Brazilian case |
title_fullStr |
Dividend clientele, new insights, and new questions: the Brazilian case |
title_full_unstemmed |
Dividend clientele, new insights, and new questions: the Brazilian case |
title_sort |
Dividend clientele, new insights, and new questions: the Brazilian case |
author |
Procianoy,Jairo Laser |
author_facet |
Procianoy,Jairo Laser Verdi,Rodrigo S. |
author_role |
author |
author2 |
Verdi,Rodrigo S. |
author2_role |
author |
dc.contributor.author.fl_str_mv |
Procianoy,Jairo Laser Verdi,Rodrigo S. |
dc.subject.por.fl_str_mv |
Dividends taxes clientele signaling capital markets |
topic |
Dividends taxes clientele signaling capital markets |
description |
This paper analyzes the dividend clientele effect and the signaling hypothesis in the Brazilian stock market between 1996 and 2000. During this period, the dividend tax was zero and the capital gains tax varied between zero and 10%. Brazilian firms face two information regimes, which allow us to test the signaling hypothesis. From a sample of 394 observations studied, 39% show a first ex-dividend day stock price higher than the price on the last cum-dividend day. The market price is higher for unanticipated dividends but, even with pre-announced dividends, stock prices are higher than the expected level, which is inconsistent with the clientele hypothesis. We also find evidence of a positive abnormal volume around the unanticipated dividend date, which is consistent with the signaling hypothesis, but no abnormal trading volume around pre-announced dividend dates. Our findings are inconsistent with the clientele hypothesis but provide support for the signaling hypothesis. |
publishDate |
2009 |
dc.date.none.fl_str_mv |
2009-06-01 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://old.scielo.br/scielo.php?script=sci_arttext&pid=S1676-56482009000100002 |
url |
http://old.scielo.br/scielo.php?script=sci_arttext&pid=S1676-56482009000100002 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
10.1590/S1676-56482009000100002 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
text/html |
dc.publisher.none.fl_str_mv |
Fundação Getulio Vargas/Escola de Administração de Empresas de São Paulo |
publisher.none.fl_str_mv |
Fundação Getulio Vargas/Escola de Administração de Empresas de São Paulo |
dc.source.none.fl_str_mv |
RAE eletrônica v.8 n.1 2009 reponame:RAE (Online) instname:Fundação Getulio Vargas (FGV) instacron:FGV |
instname_str |
Fundação Getulio Vargas (FGV) |
instacron_str |
FGV |
institution |
FGV |
reponame_str |
RAE (Online) |
collection |
RAE (Online) |
repository.name.fl_str_mv |
RAE (Online) - Fundação Getulio Vargas (FGV) |
repository.mail.fl_str_mv |
rae@fgv.br |
_version_ |
1754821104097034240 |