Information Content of Dividends: Evidence from Istanbul

2010 ◽  
Vol 3 (3) ◽  
pp. 126 ◽  
Author(s):  
Ayse Altiok-Yilmaz ◽  
Elif Akben Selcuk
Keyword(s):  
Information Content ◽  
Event Study ◽  
Stock Exchange ◽  
Information Leakage ◽  
Istanbul Stock Exchange ◽  
Event Information ◽  
Study Methodology ◽  
Dividend Increases ◽  
Signaling Hypothesis ◽  
Event Study Methodology

This study investigates the market reaction to dividend change announcements at the Istanbul Stock Exchange. A sample of 184 announcements made by 46 companies during the period 2005 to 2008 is analyzed by using the event study methodology. The results suggest that the market reacts positively to dividend increases, negatively to dividend decreases and does not react when dividends are not changed, consistent with the signaling hypothesis. Also, the results show pre-event information leakage for the decreasing dividends sample.

scholarly journals South–South Cooperation in South and East Asia: An Event Study of the China–Pakistan Economic Corridor

2019 ◽  
Vol 21 (1) ◽  
pp. 54-67
Author(s):  
Wing Him Yeung ◽  
Yilisha Pang ◽  
Asad Aman
Keyword(s):  
Stock Market ◽  
East Asia ◽  
Event Study ◽  
Stock Exchange ◽  
Global South ◽  
Short Term ◽  
Empirical Results ◽  
Study Methodology ◽  
The Impact ◽  
Event Study Methodology

South–South cooperation has been on the rise in recent years. One of the latest examples is the China–Pakistan Economic Corridor (CPEC) proposed by the Chinese and Pakistani governments in 2013. Using event study methodology, this article examines the impact of events and announcements associated with CPEC on the Pakistan Stock Exchange in Pakistan and the Shanghai Stock Exchange in China. The first key finding of this article is that the initial announcement associated with CPEC had stronger and positive short-term impact on the Pakistan Stock Exchange in comparison with the impact of subsequent CPEC events on the stock market. The second key finding is that the short-term impact of the CPEC initial announcement was stronger on the Pakistan Stock Exchange than on the Shanghai Stock Exchange, possibly due to the substantial difference in the size of the two economies. The empirical results of this article have important implications for investors, corporations and regulators to the Global South.

scholarly journals Impact of Layoff Announcements on the Market Value of the Firm

2005 ◽  
Vol 52 (2) ◽  
pp. 364-381 ◽  
Author(s):  
Morley Gunderson ◽  
Anil Verma ◽  
Savita Verma
Keyword(s):  
Event Study ◽  
Stock Exchange ◽  
Market Value ◽  
Negative Response ◽  
Toronto Stock Exchange ◽  
New Information ◽  
Study Methodology ◽  
Almost All ◽  
Event Study Methodology

In this study, we analyze the effect of layoff announcements on the market's valuation of firms. The event study methodology is applied to a sample of 214 announcements of layoffs made by major Canadian firms that traded on the Toronto Stock Exchange over the period 1982-1989. The main results are: (1) The market responds to the news of layoffs in a negative fashion, lowering the value of firms that announce layoffs, and (2) almost all of the negative response occurs on the day of the announcement, suggesting that the market is not able to fully anticipate the new information, but that it responds to it very quickly.

scholarly journals The Impact Of Analysts‟ Recommendations: Evidence From The Athens Stock Exchange

2011 ◽  
Vol 23 (2) ◽  
Author(s):  
Michalis Glezakos ◽  
Anna Merika
Keyword(s):  
Event Study ◽  
Unique Feature ◽  
Stock Exchange ◽  
Point Of View ◽  
Significant Excess ◽  
Investment Opportunities ◽  
Study Methodology ◽  
Athens Stock Exchange ◽  
The Impact ◽  
Event Study Methodology

This study aims to investigate the usefulness of analysts’ recommendations on firms listed on the Athens Stock Exchange (ASE). It contradicts the majority of published works which conclude that analysts’ recommendations do offer valuable investment opportunities. The unique feature of this work is that it sheds light on the issue, adopting a practical approach stemming from the investor’s point of view. It is shown through an event study methodology, that analysts’ recommendations do not result to any significant excess returns.

scholarly journals Effects of changes in stock market index composition on stock returns: event study methodology on Zagreb Stock Exchange

2019 ◽  
Vol 5 (1) ◽  
pp. 43-54
Author(s):  
Tihana Škrinjarić
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Event Study ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Stock Market Index ◽  
Market Index ◽  
Study Methodology ◽  
Composition Changes ◽  
Event Study Methodology

AbstractThis paper observes the short-run effects of stock market index composition changes on stock returns on the Zagreb Stock Exchange (ZSE). In that way, event study methodology is employed in order to estimate abnormal returns and compare them amongst three subsets of stocks: those leaving the market index, those entering it, and constantly included stocks. The research included 14 regular and extraordinary revisions of the market index in the period from January 2nd, 2015 until March 21st, 2018. The results have confirmed two research hypotheses: stock exclusions from the market index have a negative effect on stock returns on the ZSE, which is consistent with the price pressure hypothesis; and there exist asymmetric effects of index composition changes on stock returns. This is the first study of this kind on the Croatian stock market, thus more questions need to be answered in future research.

Impact of Dividend Announcements on Stock Prices of UK Firms Listed in London Stock Exchange

GIS Business ◽  
2018 ◽  
Vol 13 (4) ◽  
pp. 1-10
Author(s):  
Emeka Henry Alaeto
Keyword(s):  
Event Study ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
London Stock Exchange ◽  
Share Prices ◽  
Dividend Announcements ◽  
Study Methodology ◽  
Dividend Irrelevance ◽  
Event Study Methodology

The aim of this paper is to explore the possible relationship between dividend announcement and stock price reactions upon announcements by the quoted firms in London Stock Exchange (LSE). For the sake of this study, an event-study methodology was employed to calculate any abnormal or excess returns around dividend announcements for 100 firms listed in the LSE over a period of 5 years (2010-2014). The result of the event study indicates that dividend announcements do not convey information to investors (Khan, 2011). The researcher concludes by saying that dividend announcements do not convey any information to share prices, which is in consonance with the M-M Dividend Irrelevance Theory.

scholarly journals Impact of Terrorism on KSE 100: Evidence from Karachi

2021 ◽  
Vol 2 (1) ◽  
pp. 1-14
Author(s):  
SAMI UR REHMAN ◽  
QAZI SIKANDAR HAYAT ◽  
GHAYYUR QADIR
Keyword(s):  
Event Study ◽  
Stock Exchange ◽  
Critical Issue ◽  
T Test ◽  
The World ◽  
Study Methodology ◽  
The Impact ◽  
The Growth Of Economy ◽  
Terrorist Events ◽  
Event Study Methodology

Terrorism is a critical issue throughout the world. In Pakistan, terrorism is one of the major obstacle in the growth of economy. The purpose of the study is to analyze the impact of terrorism in Karachi on the performance of KSE 100. Overall 27 big terrorist activities are considered in four years, ranging from 2011 to 2014. The performance of Karachi stock exchange is measured from the return of KSE 100 index. Moreover, the performance of KSE 100 index against terrorism in Karachi are analyzed through event study methodology and t-test. The result of the study shows that terrorism in Karachi has no significant impact on Karachi stock exchange 100 in all estimation windows. There is a little impact of some pre-event days on post-event days. But overall there is no significant result of terrorism in Karachi on KSE 100. The result highlights that the intensity of terrorist events is an important contributor in signifying the impact of terrorist events on KSE 100 index.

scholarly journals The Color of Government Money. Do Investors Differently Value the Investment of Sovereign Wealth Funds?

e-Finanse ◽  
2017 ◽  
Vol 13 (1) ◽  
pp. 25-34
Author(s):  
Dariusz Urban
Keyword(s):  
Event Study ◽  
Information Disclosure ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
London Stock Exchange ◽  
Sovereign Wealth Funds ◽  
Market Reactions ◽  
Cumulative Abnormal Returns ◽  
Study Methodology ◽  
Event Study Methodology

AbstractThe article aims at pointing out the differences in market reactions regarding the announcement of an investment of selected Sovereign Wealth Funds in companies listed on the London Stock Exchange. The research sample consists of 796 market transactions made by four selected Sovereign Wealth Funds. The author employed event study methodology to calculate the average abnormal returns and cumulative abnormal returns for each fund in subsamples. The empirical findings suggest that investors react differently to the information about a fund’s investment. To the best of the author’s knowledge, the literature does not provide any answer as to how the market reacts to information disclosure of individual funds. Therefore, this paper bridges the gap in the literature within this field.

Long-Term Performance of Buybacks in India

2018 ◽  
Vol 19 (6) ◽  
pp. 1554-1566 ◽  
Author(s):  
Jayanta Kumar Seal ◽  
Jasbir Singh Matharu
Keyword(s):  
Event Study ◽  
Stock Exchange ◽  
Study Methodology ◽  
Using Data ◽  
One Year ◽  
Long Term Performance ◽  
Term Performance ◽  
Event Study Methodology

This study tries to find out the post-announcement performance of the buyback firms over the long term in India using data from the Bombay Stock Exchange (BSE). We have chosen the event study methodology and compared the performance for a one-year, a three-year, and a five-year period. The benchmarks chosen are the Sensex, the BSE 500, the size matched firms and the size and industry matched firms. The findings of the study show overperformance by buyback firms when compared to the Sensex and the BSE 500 but no conclusion can be drawn when compared to the size matched firms and size and industry matched firms.

The Announcement Effect of Cash Dividend Changes on Share Prices: Evidence from Dhaka Stock Exchange

2017 ◽  
Vol 20 (04) ◽  
pp. 1750025 ◽  
Author(s):  
Naheed Rabbani
Keyword(s):  
Stock Exchange ◽  
Abnormal Returns ◽  
Information Leakage ◽  
Cash Dividend ◽  
Announcement Effect ◽  
Share Prices ◽  
Announcement Date ◽  
Positive Abnormal Return ◽  
Study Methodology ◽  
Dividend Increases

This paper investigates the announcement effect of cash dividend changes on share prices listed on the Dhaka Stock Exchange (DSE). Standard event study methodology is used to investigate the effect of an event window of [Formula: see text]3 to [Formula: see text]3 days relative to dividend announcement date. Cumulative abnormal returns (CAR) have also been measured for a 41-day window around announcement date. This study finds that shareholders earn only normal return on the announcement of dividend increases and no changes. However, a significant positive abnormal return (AR) is observed in the preannouncement period for a dividend increase which indicates some kind of information leakage before the announcement is actually made. The announcement of dividend decrease results in a significant negative AR on the announcement day and persists even 20 days after the announcement. Significant ARs following dividend decrease announcement reveal DSE is not a semi-strong form of efficient market.

scholarly journals Investor Reaction to Information on Final Dividend Payouts on the Warsaw Stock Exchange – an Event Study Analysis

2015 ◽  
Vol 45 (1) ◽  
pp. 127-146
Author(s):  
Natalia Szomko
Keyword(s):  
Event Study ◽  
Stock Exchange ◽  
Model Estimation ◽  
Study Analysis ◽  
Event Window ◽  
Warsaw Stock Exchange ◽  
Study Methodology ◽  
Statistical Issues ◽  
Investor Reaction ◽  
Event Study Methodology

Abstract This article analyzes the investor reaction to information on the final value of dividend payouts for companies listed on the Warsaw Stock Exchange, using the event study methodology. Our research shows that investor reaction is positive for irregular payouts and both the initiation of and the increase in payouts, while negative for the resumption and of and decreases in payouts. The magnitude of the reaction is also higher for the initiation of payouts than either the increases in, or irregular payouts. This study contributes to the literature on dividend policy by presenting results for the emerging economy of Poland. Moreover, it pays particular attention to statistical issues related to the event study methodology, i.e., the verification of assumptions behind the method of returns model estimation. It also compares investor reaction to dividend changes assessed on the basis of different measures, and underlines the dependence of the results on the choice of the parameters assumed (e.g., event window length).

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