Shareholder Perks in Japan : Price Movement and Trading Volume Around Ex-Benefit Days

This study examines the valuation of shareholder perks in Japan known as kabunushi yutai, which are noncash gifts and services that shareholders receive. This article reveals that the prices of stocks with shareholder perks drop on ex-benefit days, after controlling for cash dividends and other underlying factors, and excessive trade volume is observed around ex-dividend days. Price and volume movements for stocks with shareholder perks suggest the existence of a clientele of investors who value noncash forms of payout