Stock price reaction to cash dividend announcement: evidence from Saudi Arabian stock exchange
Author
Source
Journal of Economic and Financial Research
Issue
Vol. 9, Issue 1 (30 Jun. 2022), pp.888-910, 23 p.
Publisher
Larbi Ben M'hidi Oum el-Bouaghi University
Publication Date
2022-06-30
Country of Publication
Algeria
No. of Pages
23
Main Subjects
Topics
Abstract EN
The paper is aimed to investigate the cash dividend announcement impact on stock prices of companies listed on the Saudi stock exchange during 2011– 2019.
The full sample examined is consists of 199 cash dividend announcements from 30 companies.
An event study methodology is used to find if the cash dividend events have a significant impact on stock prices, 10 days before and after the announcement dates.
The study shows a significant reaction in stock prices around the event date.
In particular, cash dividend announcements have a significant positive effect on stock prices one day after the announcement; this is consistent with the information content theory.
The presence of earlier and delayed significant abnormal returns indicates that stock prices do not reflect the publicly available information instantly and accurately, therefore the Saudi Stock Exchange is not consistent with the semi-strong form efficiency hypothesis.
American Psychological Association (APA)
Ziram, Walid. 2022. Stock price reaction to cash dividend announcement: evidence from Saudi Arabian stock exchange. Journal of Economic and Financial Research،Vol. 9, no. 1, pp.888-910.
https://search.emarefa.net/detail/BIM-1385425
Modern Language Association (MLA)
Ziram, Walid. Stock price reaction to cash dividend announcement: evidence from Saudi Arabian stock exchange. Journal of Economic and Financial Research Vol. 9, no. 1 (Jun. 2022), pp.888-910.
https://search.emarefa.net/detail/BIM-1385425
American Medical Association (AMA)
Ziram, Walid. Stock price reaction to cash dividend announcement: evidence from Saudi Arabian stock exchange. Journal of Economic and Financial Research. 2022. Vol. 9, no. 1, pp.888-910.
https://search.emarefa.net/detail/BIM-1385425
Data Type
Journal Articles
Language
English
Notes
-
Record ID
BIM-1385425