Please use this identifier to cite or link to this item: https://scholar.ptuk.edu.ps/handle/123456789/323
Title: Stock Market Reaction to Cash Dividend Announcement: Evidence from Palestine
Authors: Hannon, Azzam
shiahdeh, Fadi
Jallad, Mohammad
Atir, Abdel-Jabbar
Keywords: event study
abnormal return
cash dividend
Palestine Exchange
stock market reaction
Issue Date: 1-Sep-2016
Publisher: IISTE
Abstract: In this study, we used the event study methodology to examine if cash dividend announcements affect the stock prices of companies listed on the Palestine Exchange. We studied 62 events announced from 1/1/2006 to 31/12/2015. Appropriate statistical tests were used to examine if the cumulative abnormal return is statistically significant around the announcement day, namely, 10 days before and 10 days after the event day. Results reveal that statistically significant differences exist between cumulative abnormal returns and zero. Thus, investors could realize abnormal returns during the event window for the study period. The findings also indicate that a statistically significant negative relationship exists between dividend announcements and abnormal returns starting from the day of dividend announcement. We conclude that the market reacts negatively to cash dividends after disclosure.
URI: https://iiste.org/Journals/index.php/RJFA/article/view/32756
https://scholar.ptuk.edu.ps/handle/123456789/323
Appears in Collections:Business and Economics Faculty

Files in This Item:
File Description SizeFormat 
StockMarketReactiontoCashDividendAnnouncementevedencefromPalestine.pdf398.7 kBAdobe PDFThumbnail
View/Open


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.