Finance Seminar with Hank Bessembinder, University of Utah
The Department of Finance is proud to announce the upcoming seminar with Hank Bessembinder, University of Utah.
Hank will present:
Predicting Corporate Distributions
Ìý
Authors:
Hank Bessembinder,ÌýUniversity of Utah
Feng Zhang, University of Utah
Abstract:
Corporate distribution events, including stock splits, stock dividends, special dividends, and increases in regular dividends, are predictable, in part because they tend to recur periodically.ÌýThe market partially anticipates such recurring events, as average abnormal announcementÌýreturns are smaller if the event is more predictable. Nevertheless, a simple trading strategy thatÌýinvolves purchasing firms with high predicted probabilities of recurring distribution events earnsÌýsignificant abnormal monthly returns. These results parallel, but are distinct from, previouslyÌýdocumented return anomalies related to predictable earnings and dividend announcements.