Market reactions to dividends announcements and payouts. Empirical evidence from the Warsaw Stock Exchange

Mrzygłód, Urszula; Nowak, Sabina

doi:10.5709/ce.1897-9254.236

Cited by 13 publications

(12 citation statements)

References 43 publications

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“…The connection between unchanged dividend and stock price is statistically insignificant. Mrzygłód and Nowak (2017) investigated how prices on the Polish stock market react to dividend announcements and dividend payouts made by companies listed on the Warsaw Stock Exchange.…”

Section: Literature Reviewmentioning

confidence: 99%

Effects of Economic and Political Events on Stock Returns: Event Study of the Agrokor Case in Croatia

Škrinjarić

Orlović

2019

CES

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Major events in Croatia regarding economy and politics in the last three years have been related to the Agrokor concern. Agrokor is one of the biggest companies/ concerns in Croatia and Southeastern Europe. Since some of Agrokor's stocks are listed on the Croatian stock market, the economic and political events regarding Agrokor have affected the stock market as well to an extent. In this study we observe the effects of several economic and political events on stock returns on the Zagreb Stock Exchange, by dividing the sample into two groups. The first group consists of Agrokor's stocks and the other group consists of stocks of other companies which are listed and frequently traded on the market. The methodology used in the study was event study, by using parametric and nonparametric tests. The results indicate that specific economic and political events

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Section: Literature Reviewmentioning

confidence: 99%

Effects of Economic and Political Events on Stock Returns: Event Study of the Agrokor Case in Croatia

Škrinjarić

Orlović

2019

CES

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“…, 2018; Anwar et al. , 2016; Mrzygłód and Nowak, 2017; Ross, 1977). Recent research also provides for a positive influence of these corporate actions.…”

Section: Introductionmentioning

confidence: 99%

“…Ross, 1977;Walter, 1963) arguing that an increase in dividend leads to an increase in share price because it is a signal from the firm managers that the business has sufficient earnings and good prospects. The share price will be negatively affected by dividend cuts and omissions (Al-Shattarat et al, 2018;Anwar et al, 2016;Mrzygł od and Nowak, 2017;Ross, 1977). Recent research also provides for a positive influence of these corporate actions.…”

Section: Introductionmentioning

confidence: 99%

Impacts of corporate announcements on stock returns during the global pandemic: evidence from the Indian stock market

Pandey

Kumari

Tiwari

2022

AJAR

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PurposeThe authors examine the impacts of corporate announcements on stock returns during the pandemic stress.Design/methodology/approachThe authors employ the event study methodology with the market model on a sample of 90 events (announcement and ex-date).FindingsThe authors find that all the corporate announcements do not impact the stock returns in a similar pattern. While the bonus announcement, ex-bonus and ex-split events led to positive significant abnormal returns on the event date, the rights issue and stock-split announcements failed to influence the stock returns. The findings suggest that before making such announcements, the corporates should wait until the market recovers because even the positively impacting events result in negative market responses during pandemic stress.Practical implicationsThis study will guide the policymakers to stimulate share prices during such pandemics with the help of various corporate announcements. The investors will be assisted in understanding the stock market mechanism and making wise decisions before reacting to corporate actions during a pandemic or emergency period. While the policymakers are concerned with influencing the share prices, the investors are concerned with the composition of the risk-return parameters in their portfolio. This study will act as an essential investment tool for both.Originality/valueTo the best of the authors’ knowledge, the authors conduct the first-ever study to examine the impacts of corporate announcements during a pandemic stress period that significantly contributes to the literature. The authors examine the announcement effects in India and accurately anticipate that this study will be a pioneer in this field. This study also paves the way for future researches in this area.

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“…Akbar and Baig (2010) find insignificant excess returns for announcements related to cash dividend in their study on Pakistan Stock Market. Mrzygłód and Nowak (2017) conduct a study on the Warsaw Stock Exchange, Poland and found narrow support for the dividend signaling theory for both increase and decrease in the dividend. A positive relationship has been found in the study conducted on Indian stocks listed on the National Stock Exchange (Kumar, 2017).…”

Section: Literature Reviewmentioning

confidence: 99%

Investigating beta anomaly: comparison of Shariah-compliant and conventional stocks

Qamar

Hassan

Nazir

et al. 2021

IMEFM

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Purpose The purpose of this paper is to examine the impact of dividend announcements on the stock return of Shariah-compliant and conventional stocks. Design/methodology/approach An event study methodology is applied to study the beta anomaly. Market-adjusted return model, mean-adjusted return model and market model have been applied to calculate excess returns. Estimation period used in this study is 130 days, and event period consists of 21 days in total, i.e. starting from the day –10 “before the cash dividend announcement” to day +10 “after the cash dividend announcements. Findings It has been concluded from the results that dividend plays an informational role in the Pakistan Stock Exchange. As the investors in Pakistan react favorably to the dividend increase announcements and unfavorably to the dividend decrease announcements, they consider dividend increase announcement as good news and dividend decrease announcement as bad news. Practical implications The findings of this study have several implications for different participants of the stock market, such as investors, academicians, researchers, fund managers and policymakers. They can use this information to make decisions while making efficient portfolios. Investors may get abnormal returns by focusing on the dividend announcement patterns. This can influence the attitude of investors toward efficient investments in the stock market and ultimately contribute to the betterment of society. This study is also beneficial for academicians and researchers, as it provides a comparative analysis of Shariah-compliant and conventional stocks and the anomalous effect of dividend announcements on stock return. Originality/value Limited research in the world’s context and null is available in Pakistani context on the subject matter. The comparative analysis of “Shariah-compliant” and “conventional” stocks provides insight into the asset pricing of Shariah-compliant stocks that have not been explored earlier. This study also uses three different methods (mean model, market model and market-adjusted return models) to compare Shariah-compliant and conventional stocks

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Market reactions to dividends announcements and payouts. Empirical evidence from the Warsaw Stock Exchange

Cited by 13 publications

References 43 publications

Effects of Economic and Political Events on Stock Returns: Event Study of the Agrokor Case in Croatia

Effects of Economic and Political Events on Stock Returns: Event Study of the Agrokor Case in Croatia

Impacts of corporate announcements on stock returns during the global pandemic: evidence from the Indian stock market

Investigating beta anomaly: comparison of Shariah-compliant and conventional stocks

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