Canada's dual class shares: further evidence on the market value of cash dividends

Article Abstract:

The Canada Income Tax Act of 1971 permits Canadian corporations to create two classes of equity: one paying ordinary cash income, and the other paying capital gains income. Cash-paying shares have often sold at a premium. Empirical results indicate that the premium is largely explained by the relative value of the dividends paid and by costs imposed on investors by stock dividend payment and share conversion procedures. Premiums for a few firms also reflect the relative liquidity of the two classes of shares. No evidence exists that investors prefer cash income to equal amounts of capital gains. (Reprinted by permission of the publisher.)

Research, Interpretation and construction, Canada, Tax law, Laws, regulations and rules, Economic policy, Economic research, Capital gains tax, Equity (Law)

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Limit orders, depth, and volatility: evidence from the stock exchange of Hong Kong

Article Abstract:

This article evaluates pure order-driven markets and the role of limit orders in the liquidity provisions of them. The authors find that an increase in transitory volatility results in a market depth rise, and that transitory volatility declines when market depth increases; transitory volatility is examined for its affects on limit orders and market orders.

Hong Kong, Stock-exchange, Stock exchanges, Liquidity (Finance)

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Depositary receipts, country funds, and the peso crash: the intraday evidence

Article Abstract:

Issues related to the 1994 Mexican peso crisis are examined, focusing on the impact on Latin American equity markets. Topics include the conclusions that prices of non-Mexican securities were changed by investors during the currency crisis but the securities were not dumped.

United States, Exchange Rates, World, Legislative Bodies, Mexico, Finance, Economic aspects, International aspects, Developing countries, Recessions, Currency devaluation, Devaluation (Currency), Foreign exchange market

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