TY - JOUR
T1 - Stock dividend ex-day effect and market microstructure in a unique environment
AU - Al-Yahyaee, Khamis Hamed
PY - 2014/10
Y1 - 2014/10
N2 - This paper examines the stock dividend ex-day effect on the Muscat Securities Market (MSM), which is of interest because several of the market microstructure explanations for the ex-day effect can be ruled out. We find that there are positive abnormal returns on Omani stock dividend ex-days. We also find that firms distributing stock dividends have higher stock prices than firms that are in the same industries but do not distribute stock dividends. In addition, we find that the positive abnormal returns are positively related to stock price increases in the pre-announcement period and to stock dividend percentages. This evidence suggests that stock dividends in Oman might be used to reduce stock prices.
AB - This paper examines the stock dividend ex-day effect on the Muscat Securities Market (MSM), which is of interest because several of the market microstructure explanations for the ex-day effect can be ruled out. We find that there are positive abnormal returns on Omani stock dividend ex-days. We also find that firms distributing stock dividends have higher stock prices than firms that are in the same industries but do not distribute stock dividends. In addition, we find that the positive abnormal returns are positively related to stock price increases in the pre-announcement period and to stock dividend percentages. This evidence suggests that stock dividends in Oman might be used to reduce stock prices.
KW - Bid-ask effect
KW - Market microstructure
KW - Stock dividends
UR - http://www.scopus.com/inward/record.url?scp=84906657187&partnerID=8YFLogxK
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U2 - 10.1016/j.inteco.2014.04.002
DO - 10.1016/j.inteco.2014.04.002
M3 - Article
AN - SCOPUS:84906657187
SN - 2110-7017
VL - 139
SP - 71
EP - 79
JO - International Economics
JF - International Economics
ER -