Shareholder Perks and Stock Performance: Evidence during the Global Financial Crisis

Long-term shareholder perks and stock price reaction

“…Considering that the announcement of the introduction of shareholder perks program was shown to have a positive stock price effect, while an announcement of the abolition of shareholder perks, even if accompanied by a dividend increase, had a negative stock price effect, it can be assumed that shareholder perks exert some positive added value. These results are consistent with Serita (2017), who found that shareholder perks have a positive effect on stock prices by lowering the implementing firm's cost of capital [15], and Uchida et al (2022), who reported the share price support effect of shareholder perks during the 2008-2009 financial crisis [16].…”

Are Individual Investors Attracted to Shareholder Perks in the Emerging Markets? An Experimental Study in Indonesia

“…Future research can consider validating this study by considering other SP measurements and using all real investor subjects and sub-group them by several demographics, such as gender, investment experience, and average holding period to examine how it affects the preference of SP. Moreover, as most of recent studies in SP are using Japanese market data (Karpoff et al, 2020;Nose et al, 2021;Uchida et al, 2022;Huang et al, 2022), conducting similar research in other countries or regions may check the consistency of the results.…”

“…The Economic Impact of Shareholder Perks The important characteristic of SP is the variability of value received by each shareholder (Nose et al, 2021;Huang et al, 2022;Uchida et al, 2022). The perks will be provided if a shareholder holds a minimum number of shares, usually equivalent to the minimum trading unit set by the stock exchange.…”

“…In order to solve this problem, public companies in the emerging markets can follow strategic approaches implemented by companies in the developed countries by distributing shareholder perks (hereafter SP) payout policy as an alternative wealth distribution. SP can be observed in many developed countries as a part of companies' shareholder benefit programs in order to attract and retain individual investors (Karpoff et al, 2020;Nose et al, 2021;Uchida et al, 2022;Huang et al, 2022). The perks are in-kind gifts or purchase discounts made available to individual investors that do not scale proportionately with the number of shares held.…”

“…This paper focuses to investigate the perception of individual investors toward SP. Although there have been some researches in this topic (Karpoff et al, 2020;Huang et al, 2022;Uchida et al, 2022), there is still thin literature investigating the implementation of SP in the emerging markets such as Indonesia. The payout policy implemented in both developed and emerging markets are expected to be different where shareholder wealth maximization in emerging markets may necessary not be the goal of the firm and also considering differences in terms of culture and ethical reasoning (Li et al, 2016;Trihermanto and Nainggolan, 2020) which may affect the perception of individual investors.…”