Impact of Dividend Announcement on Share Price.

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dc.contributor.author Pirathakshi, V.
dc.contributor.author Koperunthevy, K.
dc.date.accessioned 2021-06-29T08:33:10Z
dc.date.accessioned 2022-03-11T18:05:57Z
dc.date.available 2021-06-29T08:33:10Z
dc.date.available 2022-03-11T18:05:57Z
dc.date.issued 2010
dc.identifier.uri http://drr.vau.ac.lk/handle/123456789/3029
dc.description.abstract In a dynamic world, investment decision in share market is determined by various factors. One factor is the return on shares. Therefore, the dividend announcement is having important role to determine the share prices in the stock market. This study analysis how far dividend announcement affect the share prices in the stock market and focuses on how share price respond to the information that is implicit in the event of dividend announcement and profit earned by the companies and to identify the price movement when other variable changes. More specifically this study examines how dividend announcement effect the share price and there by provides the effects on it. 10 financial sector companies and 10non financial sector companies which are listed on the Colombo Stock Exchange (CSE) were selected as sample over a period of 5 years from 2003-2007. The required data for this research was collected from CSE handbook and annual report of the companies. Daily Market Adjusted Abnormal Return, Average Abnormal Return are used as methodology of this study. Data can be analyzed by using time series regression analysis. The results indicate that the 75% of companies’ have negative relationship and 75% of companies share prices decreased after the dividend announcement. Therefore, the study concludes that there is no impact on share prices by dividend announcement and also no relationship between the financial sector and non-financial sector. en_US
dc.language.iso en en_US
dc.publisher Vavuniya Campus of the University of Jaffna. en_US
dc.subject Share price en_US
dc.subject Dividend Announcement en_US
dc.subject Market adjusted Abnormal Return en_US
dc.subject Average Abnormal Return en_US
dc.title Impact of Dividend Announcement on Share Price. en_US
dc.type Article en_US


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  • VCARS 2010 [42]
    This collection includes research papers published in the Vavuniya Campus Annual Research Sessions - 2010.

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