Ex-Dividend Day Stock Price Falls on the Spanish Stock Market

  1. Espitia, M. 1
  2. Ruiz, F.-J. 2
  1. 1 Universidad de Zaragoza
    info

    Universidad de Zaragoza

    Zaragoza, España

    ROR https://ror.org/012a91z28

  2. 2 Universidad de La Rioja
    info

    Universidad de La Rioja

    Logroño, España

    ROR https://ror.org/0553yr311

Revista:
Applied Financial Economics

ISSN: 0960-3107

Año de publicación: 1997

Volumen: 7

Número: 5

Páginas: 481-492

Tipo: Artículo

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SCOPUS: 2-s2.0-0346508212 GOOGLE SCHOLAR

Otras publicaciones en: Applied Financial Economics

Resumen

In this paper the relative valuation of dividends and capital gains in the Spanish stock market is investigated by testing if the ex-dividend price fall equals the dividend amount. This study deals with the ex-dividend price behaviour considering as database the most representative shares in the Madrid Stock Exchange throughout the period 1980-92. On analysing the ex-dividend price fall ratio and the ex-dividend price ratio, the results lead us to conclude that in the Spanish capital market the ex-dividend price fall, in average terms, is significantly lower than the dividend amount, showing a clear preference for capital gains in relation to dividends.