STOCK DISTRIBUTION ANNOUNCEMENTS AND BID‐ASK SPREADS
James M. Forjan
(Assistant Professor, Department of Business Administration, York College of Pennsylvania, York, PA 17405)
Michael S. McCorry
(Director of Research, Barclays Global Investors Australia and Lecturer, University of Sydney)
120
Abstract
In this paper, the link between stock distribution announcements and capital markets is examined. The results show that stock split announcements result in higher share prices and narrower percentage bid‐ask spreads, while stock dividend announcements have little effect on either prices or percentage spreads.
Citation
Forjan, J.M. and McCorry, M.S. (1997), "STOCK DISTRIBUTION ANNOUNCEMENTS AND BID‐ASK SPREADS", Studies in Economics and Finance, Vol. 18 No. 1, pp. 111-128. https://doi.org/10.1108/eb028738
Publisher
:MCB UP Ltd
Copyright © 1997, MCB UP Limited