The Clientele Effect in the Brazilian Market: Are Investors Irrational?
This work tests the dividend clientele effect in the Brazilian stock market between 1989 and 1993, a period during which there no dividends taxes varied between zero and 25% according to shareholders group. From a sample of 693 events studied, 47% showed first ex-dividend day stock price higher than...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Brazilian Society of Finance
2003-12-01
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| Series: | Revista Brasileira de Finanças |
| Subjects: | |
| Online Access: | http://virtualbib.fgv.br/ojs/index.php/rbfin/article/view/1129 |
| _version_ | 1818834019737927680 |
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| author | Jairo Laser Procianoy Rodrigo dos Santos Verdi |
| author_facet | Jairo Laser Procianoy Rodrigo dos Santos Verdi |
| author_sort | Jairo Laser Procianoy |
| collection | DOAJ |
| description | This work tests the dividend clientele effect in the Brazilian stock market between 1989 and 1993, a period during which there no dividends taxes varied between zero and 25% according to shareholders group. From a sample of 693 events studied, 47% showed first ex-dividend day stock price higher than in the previous day. These findings were against theoretical predictions and investors attitudes may be considered irrational because they were paying more for ex-dividend shares than for cum-dividend ones. Sample segmentation by year showed no difference. Financial institutions and first group stock yield had lower abnormal returns than other. Positive abnormal returns of 1,4% in the first ex-dividend day was found, 0,1% significant. Five days abnormal returns following last cum-dividends day study showed that stock prices increased and returned to the original price few days later. |
| first_indexed | 2024-12-19T02:28:10Z |
| format | Article |
| id | doaj.art-8774756a30914f358f6acc9ab20027c8 |
| institution | Directory Open Access Journal |
| issn | 1679-0731 1984-5146 |
| language | English |
| last_indexed | 2024-12-19T02:28:10Z |
| publishDate | 2003-12-01 |
| publisher | Brazilian Society of Finance |
| record_format | Article |
| series | Revista Brasileira de Finanças |
| spelling | doaj.art-8774756a30914f358f6acc9ab20027c82022-12-21T20:39:49ZengBrazilian Society of FinanceRevista Brasileira de Finanças1679-07311984-51462003-12-0112217242The Clientele Effect in the Brazilian Market: Are Investors Irrational?Jairo Laser ProcianoyRodrigo dos Santos VerdiThis work tests the dividend clientele effect in the Brazilian stock market between 1989 and 1993, a period during which there no dividends taxes varied between zero and 25% according to shareholders group. From a sample of 693 events studied, 47% showed first ex-dividend day stock price higher than in the previous day. These findings were against theoretical predictions and investors attitudes may be considered irrational because they were paying more for ex-dividend shares than for cum-dividend ones. Sample segmentation by year showed no difference. Financial institutions and first group stock yield had lower abnormal returns than other. Positive abnormal returns of 1,4% in the first ex-dividend day was found, 0,1% significant. Five days abnormal returns following last cum-dividends day study showed that stock prices increased and returned to the original price few days later.http://virtualbib.fgv.br/ojs/index.php/rbfin/article/view/1129dividendstaxesclientele effectBrazil |
| spellingShingle | Jairo Laser Procianoy Rodrigo dos Santos Verdi The Clientele Effect in the Brazilian Market: Are Investors Irrational? Revista Brasileira de Finanças dividends taxes clientele effect Brazil |
| title | The Clientele Effect in the Brazilian Market: Are Investors Irrational? |
| title_full | The Clientele Effect in the Brazilian Market: Are Investors Irrational? |
| title_fullStr | The Clientele Effect in the Brazilian Market: Are Investors Irrational? |
| title_full_unstemmed | The Clientele Effect in the Brazilian Market: Are Investors Irrational? |
| title_short | The Clientele Effect in the Brazilian Market: Are Investors Irrational? |
| title_sort | clientele effect in the brazilian market are investors irrational |
| topic | dividends taxes clientele effect Brazil |
| url | http://virtualbib.fgv.br/ojs/index.php/rbfin/article/view/1129 |
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