Market reaction to changes in dividend payments policy in Jordan
Other Title(s)
رد فعل السوق المالي في سياسة توزيع الأرباح في الأردن
Dissertant
al-Shattarat, Husni Khalil Jamil
Thesis advisor
Comitee Members
Abd Allah, Khalid Amin
Salamah, Rashid Muhammad
Husayn, Nizam Muhammad Ali
University
Arab Academy for Financial and Banking Sciences
Faculty
The Faculty of Banking and Financial Sciences
Department
Accounting Department
University Country
Jordan
Degree
Ph.D.
Degree Date
2008
English Abstract
The main objective of this dissertation is to examine empirically the signaling theory for a sample of firms listed at Amman Stock Exchange (ASE) during the period 2001 to 2006.
The sample consists of 215 observations.
The Event Study Methodology (ESM) is applied to examine the market reaction to dividend change announcements.
The naive model is used to classify the sample under four sub samples; Dividend Increase, Dividend Decrease, Dividend No Change and No Dividend No Change.
The market model, mean adjusted model market adjusted model, market model adjusted with Scholes and Williams and market model adjusted with Fowler and Rorke models are used to generate the expected returns.
Also, the / -test, ZD test and Corrado's non-parametric test are used to examine the significance of the mean and cumulative abnormal returns.
Overall, the results show that the market reacts positively to dividend increase, dividend decrease and dividend no change announcements.
In addition, the results indicate that there is no significant market reaction to dividend no change sample with zero distributions.
This result indicated that there is little value-relevance to dividend change announcements.
The interpretation of the positive market reaction is related to dividend release announcements rather than dividend changes.
Therefore, there is some support to the signaling hypothesis to dividend release.
Furthermore, applying thin trading models and non-parametric tests leads to the same conclusion.
Main Subjects
Economics & Business Administration
Topics
No. of Pages
112
Table of Contents
Table of contents.
Abstract.
Chapter One : introduction.
Chapter Two : literature review.
Chapter Three : methodological approach : event study methodology.
Chapter Four : sample selection criteria and hypothesis development.
Chapter Five : market reaction to dividend payments.
Chapter Six : summary, conclusions and recommendations.
References.
American Psychological Association (APA)
al-Shattarat, Husni Khalil Jamil. (2008). Market reaction to changes in dividend payments policy in Jordan. (Doctoral dissertations Theses and Dissertations Master). Arab Academy for Financial and Banking Sciences, Jordan
https://search.emarefa.net/detail/BIM-307189
Modern Language Association (MLA)
al-Shattarat, Husni Khalil Jamil. Market reaction to changes in dividend payments policy in Jordan. (Doctoral dissertations Theses and Dissertations Master). Arab Academy for Financial and Banking Sciences. (2008).
https://search.emarefa.net/detail/BIM-307189
American Medical Association (AMA)
al-Shattarat, Husni Khalil Jamil. (2008). Market reaction to changes in dividend payments policy in Jordan. (Doctoral dissertations Theses and Dissertations Master). Arab Academy for Financial and Banking Sciences, Jordan
https://search.emarefa.net/detail/BIM-307189
Language
English
Data Type
Arab Theses
Record ID
BIM-307189
