• Declaration Effect of Cash & Stock Dividends on Share Price: An Empirical Study on Dhaka Stock Exchange

    Editor(s):
    Alim Al Ayub Ahmed (see profile)
    Date:
    2012
    Group(s):
    Asian Business Review
    Item Type:
    Article
    Permanent URL:
    http://dx.doi.org/10.17613/rqfj-5j98
    Abstract:
    This study analyzes the impact of different types of dividend declaration, namely stock and cash dividends. Using event study method, MAAR and CAAR, this study found no evidence of abnormal returns on the declaration day for either of the types of dividends. However, significant negative returns are reported on days prior to the declaration day for stock dividend, indicating speculative nature of the investors. Furthermore, it provides positive returns during the post-announcement period as the investors realize the chance of potential gains. However, as far as cash dividend is concerned companies listed under DSE do not provide any significant abnormal returns during the 60 days event window. For CAAR, no significant return is reported for cash dividend, while stock dividend provided a maximum 5.6% abnormal returns during the post announcement period.
    Metadata:
    Published as:
    Journal article    
    Status:
    Published
    Last Updated:
    5 years ago
    License:
    Attribution-NonCommercial

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