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The Valuation Impacts of Specially Designated Dividends

Published online by Cambridge University Press:  06 April 2009

Narayanan Jayaraman  and
Kuldeep Shastri
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Abstract

This paper examines the valuation impacts of specially designated dividends (SDDs) by analyzing the behavior of stock and bond prices on dates surrounding their announcements. The evidence presented here suggests that SDDs are considered positive signals by the market, with (most of) the gains associated with their announcements accruing to stockholders. In addition, we present some evidence that the gain to stockholders is negatively related to the frequency of SDD announcements.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 23 , Issue 3 , September 1988 , pp. 301 - 312
Copyright
Copyright © School of Business Administration, University of Washington 1988

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References

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