The Ex‐dividend Day: Action On and Off the Danish Exchange

Umid Akhmedov and Keith Jakob

The Financial Review, 2010, vol. 45, issue 1, 83-103

Abstract: We examine ex‐dividend day behavior on the Copenhagen Stock Exchange. We report price‐drop ratios of 32% and 18% for close‐to‐close and close‐to‐open samples, respectively, well below the ratios observed in the United States. Our findings are generally consistent with limit order adjustment explanations from recent literature. In Denmark, a unique average price trading opportunity makes it possible for investors to capture dividends without directly altering supply or demand in the regular market, and therefore not necessarily driving the price‐drop ratios toward one.

Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://doi.org/10.1111/j.1540-6288.2009.00238.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:finrev:v:45:y:2010:i:1:p:83-103

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0732-8516

Access Statistics for this article

The Financial Review is currently edited by Cynthia J. Campbell and Arnold R. Cowan

More articles in The Financial Review from Eastern Finance Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().