Impacts of dividend announcement on stock return: empirical study: Algiers stock exchange

Abstract EN

This paper aims to determine the reaction of the Algerian stock exchange (SGBV) to dividend announcements by a sample of companies listed on the Algiers stock exchange, and for a fixed period 2018-2019.

to reach the goal, the event's methodology was relied upon to study the effect of the dividend announcement on the share price surrounding forty days of the announcement.

additionally, the stock price reaction is determined for the dividend announcement.

the results of the research indicate that stock prices are moving up significantly after dividend announcements, and downward after the date of loss of the right to claim dividends.

it was statistically disclosed using abnormal return (AR) from the market model.

the results emphasize the theory of dividend distribution, because dividend announcements have a significant impact on stock prices.