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Volume 18, Issue 1
1 February 1997
Studies in Economics and Finance Cover Image for Volume 18, Issue 1
Review Article| February 01 1997

STOCK DISTRIBUTION ANNOUNCEMENTS AND BID‐ASK SPREADS

James M. Forjan;
James M. Forjan
Assistant Professor, Department of Business Administration, York College of Pennsylvania, York, PA 17405
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Michael S. McCorry
Michael S. McCorry
Director of Research, Barclays Global Investors Australia and Lecturer, University of Sydney
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Author & Article Information
Publisher: Emerald Publishing
Online ISSN: 1755-6791
Print ISSN: 1086-7376
© MCB UP Limited
1997
Studies in Economics and Finance (1997) 18 (1): 111–128.
https://doi.org/10.1108/eb028738

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.

© MCB UP Limited
1997
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