Ex-Dividend Day Stock Price Falls on the Spanish Stock Market
- Espitia, M. 1
- Ruiz, F.-J. 2
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1
Universidad de Zaragoza
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2
Universidad de La Rioja
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ISSN: 0960-3107
Any de publicació: 1997
Volum: 7
Número: 5
Pàgines: 481-492
Tipus: Article
Altres publicacions en: Applied Financial Economics
Resum
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.