Dividends in the Czech Capital Market and an Optimal Investment Strategy
Year: 2000 Volume: 50 Issue: 12 Pages: 685-698
Abstract: The average dividend yield on the Czech capital market from 1995 to 1999 was 4.8%. Stocks with high dividend yields (>5.5%) exhibited non-rational price pressures after their ex-dividend date. The average over-the-period return in the four days following the ex date was negative 4.7% ? stock prices continued to fall even though the stocks were bought without dividends. Short-term investors therefore suffered a capital loss that was greater than both the net and gross dividend paid. Simulated investment strategies suggest that it is reasonable for an investor to collect dividends on low-dividend-yield stocks (
JEL classification: G1, G14, G35
Keywords: dividends; ex-dividend day; efficient market; investment strategy
RePEc: n/a
 Attachment [PDF] |  Print  Recommend to others |
