Complimentary Tickets, Stock Liquidity, and Stock Prices: Evidence from Japan

This paper examines how complimentary ticket initiation affects stock liquidity and stock prices. Since complimentary tickets are relatively advantageous for small shareholders, it can be predicted that firms' announcements for initiating complimentary tickets increase in the number of small shareholders and stock liquidity. Using 172 sample of complimentary ticket initiation of Japanese firms, we identify that the number of shareholders increases and stock liquidity improves following the announcements of complimentary ticket initiation. We also find that the stock price increases in response to the announcement. There is a positive relationship between the magnitude of the stock price increase and the extent of improvement of stock liquidity.