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There is considerable discussion about controlling volatility by imposing price limits on asset prices. We examine the effects of price limits on a stock market by testing the volatility spillover, delayed price discovery, and trading interference hypotheses in a leading emerging market, the Istanbul Stock Exchange, which has a unique market microstructure as related to price limits. Our results support the volatility spillover, delayed price discovery, and trading interference hypotheses. We also show price locks at limits provide significantly stronger evidence regarding the effects of price limits than limit moves only. Finally, price limits have a significant effect on the stock market, casting doubt on their effectiveness. 2006 The Southern Finance Association and the Southwestern Finance Association.

As one of the important forms for dividend distribution, cash dividend is the main method for return to shareholders. China Securities Regulatory Commission has released a series of related measures since 2008 to encourage listed companies to adopt long-term dividend policies and guide listed companies to conduct cash dividend as far as possible. The No. 3 directive for supervision on listed companies by China Securities Regulatory Commission standardized cash dividend in 2013. By taking MengDian HuaNeng Thermal Power Corporation Limited stocks as the example, this article investigates the influence of different dividend policies of different years on stock price based on the signal transmission dividend theory by utilizing the event study analysis, in order to verify if the management layer utilizes dividend policy signal transmission to disclose information to investors, in order to illustrate that the cash dividend distributed by companies indeed affects investors' decision on investment. 1Overview on Dividend Distribution Policies Dividend policies refer to the distribution selection on the use of the net profit after tax of companies, dividend payment to investors or retaining for investment in the next stage, with the mutual relation of waning and waxing. As one of the three main financial management pillars for companies, dividend policy keeps the logistic consistency between company financing and investment activities. As an essential process for company finance, reasonable dividend policy not only helps companies acquire capital source with relatively less capital, but also establishes preferable company image, to retain existing investors and attract potential investors and creditors who are holding a wait-and-see attitude. It helps companies seize long-term stable opportunities for growth by keeping investment enthusiasm of investors.

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This study examines the momentum and contrarian effects on stock returns in one of the leading emerging markets, which has a unique market structure, with record-high inflation, high volatility, high turnover, low correlation of returns with other exchanges and myopic investors: the Istanbul Stock Exchange (ISE). It also investigates the weak-form efficiency of the stock market by examining the profitability of a number of contrarian strategies based on past returns, size, price, book-to-market and earnings-toprice ratios of stocks in various lengths of formation and holding periods. Our findings show that a self-financing trading strategy, buying past loser stocks and selling past winner stocks generate significant abnormal returns (approximately 15% annually) in ISE. However, these large contrarian profits are for bearing the extra risk of loser stocks similar to the US results. We also find significant price, size, and B/M effects in stock returns. Finally, our results show the continous profitability of contrarian strategies both in very short (starting from 1 month) and in long holding periods (up to 36 months), which appears to be related to country-specific factors.