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
Authors:
Hank Bessembinder,University of Utah
Feng Zhang, University of Utah
Abstract:
Corporate distribution events, including stock splits, stock dividends, special dividends, andincreases in regular dividends, are predictable, in part because they tend to recur periodically.The market partially anticipates such recurring events, as average abnormal announcementreturns are smaller if the event is more predictable. Nevertheless, a simple trading strategy thatinvolves purchasing firms with high predicted probabilities of recurring distribution events earnssignificant abnormal monthly returns. These results parallel, but are distinct from, previouslydocumented return anomalies related to predictable earnings and dividend announcements.