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Author: Apostolos Dasilas Publisher: ISBN: Category : Languages : en Pages : 38
Book Description
This study investigates the stock market reaction of the Athens Stock Exchange (ASE) to cash dividend announcements for the period 2000-2004. In particular, the paper examines both the stock price and trading volume response to company announcements about dividend distributions. The dividend distribution in Greece features remarkable differences from those of US, UK and other developed markets. First, dividends in Greece are paid on a yearly basis. Second, the corporate law designates with high accuracy the minimum amount for distribution from the net earnings. Third, neither tax on dividends nor on capital gains is imposed in Greece. Despite this restrictive informational environment, we document significant market reaction on dividend announcement dates. Similar market reaction is observed to dividend change announcements, lending support to the quot;information content of dividends hypothesisquot; which predicts market reaction on the direction of that of dividend change.
Author: Apostolos Dasilas Publisher: ISBN: Category : Languages : en Pages : 38
Book Description
This study investigates the stock market reaction of the Athens Stock Exchange (ASE) to cash dividend announcements for the period 2000-2004. In particular, the paper examines both the stock price and trading volume response to company announcements about dividend distributions. The dividend distribution in Greece features remarkable differences from those of US, UK and other developed markets. First, dividends in Greece are paid on a yearly basis. Second, the corporate law designates with high accuracy the minimum amount for distribution from the net earnings. Third, neither tax on dividends nor on capital gains is imposed in Greece. Despite this restrictive informational environment, we document significant market reaction on dividend announcement dates. Similar market reaction is observed to dividend change announcements, lending support to the quot;information content of dividends hypothesisquot; which predicts market reaction on the direction of that of dividend change.
Author: Christoph Schleicher Publisher: ISBN: Category : Languages : en Pages :
Book Description
This study investigates the effects of dividend announcements on stock prices and trading volume in the Austrian stock market. Abnormal returns are established as the difference between actual returns and expected returns generated by the Market Model. We use the model of expected dividends such that any change in the announced dividend-stream is unanticipated. Our results provide evidence that announced dividend changes bring new information to the market and that stock prices move in the same direction as dividends. In addition, we find that stock prices react rather quickly to the new information. We also report an increase in stock return volatility in the cases of announced constant dividends and dividend decreases, indicating a heterogeneous interpretation of the signal at the individual level. Finally we find that trading volume on average shows a significant increase around the announcement date, supporting the hypothesis that dividend changes in either direction induce investors to revise their portfolios.
Author: Mohib Ullah Publisher: ISBN: Category : Languages : en Pages : 21
Book Description
The finance literature reports mixed results about the stock market reaction to dividend announcements. This study has tried to figure out that the heterogeneous stock market reaction to dividend announcements might be attributed to several firm-specific financial and non-financial factors. In this vein, this study investigates the role of family ownership, firm size, leverage, and dividend yield in explaining the stock market reaction to dividend announcements. Using a sample of 206 dividend announcements of 136 firms listed at the Pakistan Stock Exchange over the period of 2008 to 2012, results of both the univariate tests and the regression analysis show stock market reaction to dividend announcements varies significantly across different groups of firms. Specifically, our results show that family ownership, firm size, leverage, and dividend yield play a significant role in affecting the stock market reaction to dividend announcements.
Author: John Capstaff Publisher: ISBN: Category : Languages : en Pages : 26
Book Description
This study tests the signaling theory of dividends by investigating the stock price reaction to dividend announcements on the Oslo Stock Exchange (OSE), and subsequent changes in the cash flows of the firms involved. This paper adds to existing evidence by examining the role of dividends in a market where the corporate ownership structure is notably different from the U.S. and the U.K., and where the motivation to use dividends as a signaling mechanism appears to be stronger. The results indicate significant abnormal stock returns are associated with announcements of dividend changes. The results are robust to alternative models of dividend expectations, after controlling for the impact of earnings announcements, and are consistent across sub-periods in the sample. The stock market reaction is most pronounced for large, positive dividend announcements that are followed by permanent cash flow increases. This evidence provides modest support for the signaling theory of dividends in Norway, but it does not support the proposition that corporate ownership structure is an important influence on the use of dividends as a signaling mechanism.
Author: Ghada Abbas Publisher: ISBN: Category : Languages : en Pages : 10
Book Description
According to the signaling theory, dividend announcements are usually considered as a signal to the investors, about firm's future performance, that results in stock prices changes. This study attempts to investigate the stock prices response to dividend announcement in the Damascus Securities Exchange. The purpose of the study is to identify whether there are any significant abnormal returns around the public announcement of dividend. An event study methodology is used for an event window of forty days surrounding the announcement day. Research results indicate that most average abnormal returns are statistically insignificant, whereas the cumulative average abnormal returns are statistically significant for the whole event window. The downward drift of the cumulative average abnormal returns six days after the announcement suggests that prices don't adjust immediately to dividend information. The stock reactions appear within post-event window gradually in response to the dividends announcement.
Author: Apostolos Dasilas
Author: Apostolos Dasilas
Author: G. Abeyratna
Author: Christoph Schleicher
Author: Mohib Ullah
Author: Cynthia Sari Dewi
Author: Naimat Ullah Khan
Author: Agnes Lafferty
Author: John Capstaff
Author: Ghada Abbas
Author: Yi Liu