Journal article
Short-term trading around ex-dividend days: Additional evidence
Journal of financial economics, v 21(2), pp 291-298
01 Sep 1988
Abstract
A dividend tax penalty creates profitable trading opportunities for short-term traders with sufficiently low transaction costs. In stocks with ex-dividend day returns affected by short-term trading, ex-day returns are positively correlated with transaction costs. Data from 1964–1985 indicate that short-term traders are the marginal investors in high-yield stocks, primarily since the introduction of negotiated commissions on the NYSE. Short-term trading is not evident in low-yield stocks, nor does it appear prevalent before negotiated commissions.
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Details
- Title
- Short-term trading around ex-dividend days: Additional evidence
- Creators
- Jonathan M. Karpoff - University of WashingtonRalph A. Walkling - The Ohio State University
- Publication Details
- Journal of financial economics, v 21(2), pp 291-298
- Publisher
- Elsevier
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Finance
- Web of Science ID
- WOS:A1988Q964600005
- Scopus ID
- 2-s2.0-0000929257
- Other Identifier
- 991021881497104721
InCites Highlights
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- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Business, Finance
- Economics