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Impact of Dividend Announcement on Stock Returns and Market Efficiency in India.
- Source :
- Indian Journal of Public Health Research & Development; Oct2019, Vol. 10 Issue 10, p123-128, 6p
- Publication Year :
- 2019
-
Abstract
- The announcement of dividend can be seen in two perspectives: if the dividend that is announced is up to expectations of shareholders, the market price of the shares will be positively affected. Whereas, if the dividend that is announced is not up to expectations of the equity investors, the market price of the shares will be negatively affected. Market efficiency is defined as the amount of time it takes for the stock market to react to announced public information. Finally, when a market is strong-form efficient, investors are unable to earn above normal returns by relying on both public and private information. This research is an attempt to find out the relationship between dividend announcement and the market efficiency. This paper explores the market reaction to dividend announcements of BSE SENSEX stocks for the period 2014-2017 using Event study methodology. [ABSTRACT FROM AUTHOR]
- Subjects :
- DIVIDENDS
STOCK exchanges
MARKET timing
FINANCIAL market reaction
MARKET prices
Subjects
Details
- Language :
- English
- ISSN :
- 09760245
- Volume :
- 10
- Issue :
- 10
- Database :
- Complementary Index
- Journal :
- Indian Journal of Public Health Research & Development
- Publication Type :
- Academic Journal
- Accession number :
- 140756179
- Full Text :
- https://doi.org/10.5958/0976-5506.2019.02781.5