search query: @indexterm QUANTITATIVE TECHNIQUES / total: 178
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| Author: | Rankine, G. Stice, E. |
| Title: | The market reaction to the choice of accounting method for stock splits and large stock dividends |
| Journal: | Journal of Financial and Quantitative Analysis
1997 : JUN, VOL. 32:2, p. 161-182 |
| Index terms: | QUANTITATIVE TECHNIQUES ACCOUNTING STOCKS |
| Language: | eng |
| Abstract: | Prior research has used inaccurate classification rules to distinguish between stock splits and stock dividends. The CRSP classification of two-for-one stock distributions agrees with the actual accounting treatment only 23% of the time. In addition, the accounting treatment impacts the announcement period reaction -- two-for-one distributions accounted for as stock dividends are associated with five-day announcement period returns of 2.70%, significantly greater than the 0.93% announcement returns for distributions accounted for as stock splits. |
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