Ex—dividend day stock price falls on the Spanish stock market

Manuel Espitia and Francisco-Javier Ruiz

Applied Financial Economics, 1997, vol. 7, issue 5, 481-492

Abstract: In this paper the relative valuation of dividends and capital gains in the Spanish stock market is investigated by testing if the ex-dividend price fall equals the dividend amount. This study deals with the ex-dividend price behaviour considering as database the most representative shares in the Madrid Stock Exchange throughout the period 1980-92. On analysing the ex-dividend price fall ratio and the ex-dividend price ratio, the results lead us to conclude that in the Spanish capital market the ex—dividend price fall, in average terms, is significantly lower than the dividend amount, showing a clear preference for capital gains in relation to dividends.

Date: 1997
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/096031097333349 (text/html)
Access to full text is restricted to subscribers.

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:taf:apfiec:v:7:y:1997:i:5:p:481-492

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAFE20

DOI: 10.1080/096031097333349

Access Statistics for this article

Applied Financial Economics is currently edited by Anita Phillips

More articles in Applied Financial Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().