TY - JOUR
T1 - Further evidence on the announcement effect of bonus shares in an imputation tax setting
AU - Balachandran, Balasingham
AU - Faff, Robert
AU - Tanner, Sally
N1 - Funding Information:
We would like to thank Michael Theobald, Kannan Thuraisamy, and participants at the workshop held in the Victoria University of Wellington in April 2002. The first author acknowledges the grant received from Faculty of Business and Economics, Monash University in 2000.
Copyright:
Copyright 2004 Elsevier B.V., All rights reserved.
PY - 2004/8
Y1 - 2004/8
N2 - This study examines share price reaction to the announcement of bonus share issues for a sample of Australian companies over the period 1992 to 2000. The risk-adjusted price reaction from day 0 to day 1 is positive and statistically significant, averaging 2.37%. However, abnormal price reaction to bonus issue announcements is statistically significantly stronger for industrial nonfinancial companies and mining companies than financial companies. Finally, we find a significant positive cash flow performance, which is taken to indicate that companies that announced bonus share issues provide strong signals regarding their future performance.
AB - This study examines share price reaction to the announcement of bonus share issues for a sample of Australian companies over the period 1992 to 2000. The risk-adjusted price reaction from day 0 to day 1 is positive and statistically significant, averaging 2.37%. However, abnormal price reaction to bonus issue announcements is statistically significantly stronger for industrial nonfinancial companies and mining companies than financial companies. Finally, we find a significant positive cash flow performance, which is taken to indicate that companies that announced bonus share issues provide strong signals regarding their future performance.
UR - http://www.scopus.com/inward/record.url?scp=4043067611&partnerID=8YFLogxK
U2 - 10.1016/j.gfj.2004.02.001
DO - 10.1016/j.gfj.2004.02.001
M3 - Article
AN - SCOPUS:4043067611
SN - 1044-0283
VL - 15
SP - 147
EP - 170
JO - Global Finance Journal
JF - Global Finance Journal
IS - 2
ER -