Share Capitalization Changes, Information, And the Australian Equity Market

Abstract

Bonus issues, share splits and rights issues are studied in a replication and extension of the classic Fama, Fisher, Jensen and Roll study. On the Melbourne exchange, each category on average is associated with positive abnormal returns. However, the market does not appear to value bonuses or splits in their own right: prices appear to reflect the information released in the capitalization changes (and associated events). For example, share splits which were not accompanied by effective dividend increases did not experience positive abnormal returns. With one puzzling exception, the market behaviour was "efficient".

The Behavior of China's Stock Prices in Response to the Proposal and Approval of Bonus Issues

“…Therefore, on average, the bonus proposals raise positive CARs around the announcement date. That the announcement of bonus proposals, on average, has a positive effect on China's stock prices coincides with the evidence of Ball, Brown, and Finn (1977) for Australian stock prices. The CARs of an "Overall" portfolio are by construction an aggregate of different sizes of bonus issues.…”

Further evidence on the announcement effect of bonus shares in an imputation tax setting

“…Empirical work (particularly in the United States) has shown that the market generally reacts positively to the announcement of a bonus issue/stock dividend (see, e.g., United States- Foster & Vickrey, 1978;Grinblatt, Masulis, & Titman, 1984;McNichols & Dravid, 1990;Rankine & Stice, 1997a, 1997bWoolridge, 1983;Australia-Ball, Brown, & Finn, 1977, Canada-Masse, Hanrahan, & Kushner, 1997New Zealand-Anderson, Cahan, & Rose, 2001;Sweden-Lijleblom, 1989). The current paper extends the earlier work of Ball et al (1977) by investigating the impact of Australian company bonus issues on share prices around announcement dates using daily return data for the period from January 1992 to December 2000.…”

Halka Açık Firmalarda Kâr Payı Dağıtım Duyurularının Hisse Senedi Fiyatlarına Etkisinin Ölçülmesi: Borsa İstanbul’da Bir Uygulama

“…Pettit (1972Pettit ( ) 1967Pettit ( -1969 dönemlerini kapsayan ve 135 firma üzerinde yapmış olduğu çalışmada kâr payı değişiklikleri sonucu ortaya çıkan duyurularının hisse senedi fiyatlarına etkisini incelemiş, kâr payı değişim duyurularının önemli bilgiler içerdiğini ve piyasanın bilginin hisse senetleri fiyatlarına dâhil edilmesinde etkili olduğunu gözlemlemiştir. Ball, Brown ve Finn (1977) 1960-1969 yılları arasında aylık hisse senedi verilerini kullanarak hisse senetlerinin bedelsiz olması ya da bölünmesi gibi duyuruların hisse senedi fiyatlarına etkisini incelemiştir. Araştırma bulgularına göre, kâr payı dağıtım duyurularının hisse senetleri fiyatlarında istatistiksel olarak etkisi olmadığı gözlemlenmiştir.…”