Finance Cluster Seminar: Allaudeen Hameed

29 April, 2016 - 14:30 to 16:00
Joyce Ackroyd Building 37, Room 430

Abstract:

Stocks that start paying dividends tend to co-move more with other dividend paying stocks and co-move less with stocks that are non-dividend payers. These changes in return co-movement do not come from variations in firm fundamentals or characteristics. Instead, we find strong evidence that the return comovement generated by dividend decisions is related to ownership and institutional trading. Mutual funds that have an explicit preference for dividends hold more of the dividend initiators and flows to these funds move the prices of dividends payers in tandem. Our findings support a clientele-based explanation for return comovement.

Allaudeen Hameed, NUS Business School, National University of Singapore

Research interests include: Trading Strategies, Efficient Markets, International Finance, Liquidity

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