Master Study: Stock Price Reaction to Dividends Declaration in Emerging Stock Markets

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الأربعاء, سبتمبر 08 2021
رسائل ماجستير و دكتوراة
Master Study: Stock Price Reaction to Dividends Declaration in Emerging Stock Markets

The effect of cash dividend on the change of stock price on ex - dividend day is one of the important topics researchers gave a lot of attention

This study examines the common stock price behavior on ex-dividend day in Egyptian stock Market, and whether there is a significant statistical relationship between cash dividend as independent variable and stock price as dependent variable. The researchers executed the examination on the raw stocks’ prices during the period from 2006 till 2010. It is noticeable that the Egyptian stocks market has special features where there are neither taxes on capital gains nor on cash dividends, and cash dividends in almost cases are distributed annually. The study is conducted on each year separately then on the accumulated data of all years to give diversity in results. A significant statistical relationship between cash dividend and price drop on ex-dividend day is found. The research found that the stock raw price drops on ex-dividend day by less than the amount of cash dividend and the average ratio of change in price to cash dividend during the whole period from 2006 till 2010 is 0.534. Which means that there is a market abnormal return that can lead to an arbitrage opportunity for investors.

 

Fadaly S. Dina

Assistant Professor - Dept. of Finance and Accounting 

Arab Academy for Science & Technology

 

Mohame El - Tahan

Academic MBA

 

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قراءة 545 مرات آخر تعديل في الأربعاء, 08 سبتمبر 2021 13:47
المزيد في هذه الفئة : « Master Study: Does Ownership Structure have an effect on Corporate Voluntary Disclosure? دراسة ماجستير: تطوير المؤشر المصري لقياس مستوى مسئولية الشركات المقيدة بالبورصة المصرية »

الموضوعات ذات الصلة

سجل الدخول لتتمكن من التعليق

 

في المحاسبين العرب، نتجاوز الأرقام لتقديم آخر الأخبار والتحليلات والمواد العلمية وفرص العمل للمحاسبين في الوطن العربي، وتعزيز مجتمع مستنير ومشارك في قطاع المحاسبة والمراجعة والضرائب.

النشرة البريدية

إشترك في قوائمنا البريدية ليصلك كل جديد و لتكون على إطلاع بكل جديد في عالم المحاسبة

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محظور

جميع النصوص و الصور محمية بحقوق الملكية الفكرية و لا نسمح بالنسخ الغير مرخص

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