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Declaration Effect of Cash & Stock Dividends on Share Price: An Empirical Study on Dhaka Stock Exchange

Asian Business Review

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Title Declaration Effect of Cash & Stock Dividends on Share Price: An Empirical Study on Dhaka Stock Exchange
 
Creator Rahman, Md Lutfor; Department of Business Administration, Northern University Bangladesh, BANGLADESH
Amin, Mohammad Ruhul; Department of Business Administration, Northern University Bangladesh, BANGLADESH
Siddikee, Md. Noman; Department of Business Administration, International Islamic University Chittagong, BANGLADESH
 
Subject Cash Dividends, Stock Dividends, Share Price, Dhaka Stock Exchange
 
Description This study analyzes the impact of different types of dividend declaration, namely stock and cash dividends. Using event study method, MAAR and CAAR, this study found no evidence of abnormal returns on the declaration day for either of the types of dividends. However, significant negative returns are reported on days prior to the declaration day for stock dividend, indicating speculative nature of the investors. Furthermore, it provides positive returns during the post-announcement period as the investors realize the chance of potential gains. However, as far as cash dividend is concerned companies listed under DSE do not provide any significant abnormal returns during the 60 days event window.  For CAAR, no significant return is reported for cash dividend, while stock dividend provided a maximum 5.6% abnormal returns during the post announcement period.
 
Publisher Asian Business Consortium
 
Contributor —
 
Date 2015-03-04
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
—
 
Format application/pdf
 
Identifier http://journals.abc.us.org/index.php/abr/article/view/Rahman%2C%20Amin%2C%20Siddikee
 
Source Asian Business Review; Vol 1, No 1 (2012): Inaugural Issue; 72-79
2305-8730
2304-2613
 
Language eng
 
Relation http://journals.abc.us.org/index.php/abr/article/view/Rahman%2C%20Amin%2C%20Siddikee/245
 
Rights Copyright (c) 2015 Md Lutfor Rahman, Mohammad Ruhul Amin, Md. Noman Siddikee
http://creativecommons.org/licenses/by-nc/4.0