Title: The Impact of Dividend Changes on Stock Return in the US Stock Market
Abstract: This research investigates the relationship of changes in dividends with stock return. After decades of inconclusive research on the relevance of dividends to shareholders’ wealth, the initially found positive relationship between changes in dividends and stock return is tested using a recent data sample. The research follows the event study methodology and finds that excess stock returns are present on the days following a dividend announcement. The relationship however, does not seem to be as strong in comparison to previous literature following a similar methodology a few decades ago. Suggesting that investors have noticed the inconclusive stance of academic scholars about the relevance of dividends, and have adjusted their reaction to dividends accordingly.
Publication Year: 2019
Publication Date: 2019-01-01
Language: en
Type: dissertation
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Cited By Count: 1
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