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The effect of dividend distribution on share return in Chile

Author

Listed:
  • Mauricio Nash
  • Darcy Fuenzalida.

Abstract

Numerous studies relating to the field of dividends have been carried out over the past twenty-seven years. The objective of this paper is to contrast it with the Barclay study (1987) and to complement the Venkatesh paper (1989). This piece of research concludes that, contrary to Barclay’s findings, on their postclosure date, share returns in Chile do not fall in the amount of their dividend, owing to the fact that in this country the effect depends on the type of dividend. Finally, and as a complement to the Venkatesh study, it was determined that the average volatility of the twenty-five days prior to closure is lower than that evinced in the twenty-five days after closure.

Suggested Citation

  • Mauricio Nash & Darcy Fuenzalida., 2004. "The effect of dividend distribution on share return in Chile," Estudios Gerenciales, Universidad Icesi, December.
    • Handle: RePEc:col:000129:003587
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    References listed on IDEAS

    as
    1. Barclay, Michael J., 1987. "Dividends, taxes, and common stock prices : The ex-dividend day behavior of common stock prices before the income tax," Journal of Financial Economics, Elsevier, vol. 19(1), pages 31-44, September.
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    Cited by:

    1. Muñoz, Ercio & Rodriguez, Arturo, 2017. "Ex-dividend date stock behavior and the clientele effect: Evidence around a tax reduction," Global Finance Journal, Elsevier, vol. 32(C), pages 55-61.

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    More about this item

    Keywords

    Dividend; Clientele Effect; CutoffDate; Dividend and Capital Gain.;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

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