Dividend announcement and market reaction Indian capital market essay
Namely, some of the hypotheses posed in this article are that there will be significant differences in the stock prices of the sampled companies, mediated by dividends. This study examined the impact of dividend announcements on stocks in the Indian stock market. Namely, the results of twenty of the following hypotheses stated in this article are that there will be significant differences in the stock prices of the sampled companies, mediated through dividends. The Indian capital market can be considered as an ideal case study to examine the stock market response. on dividend announcements due to the unique market. The article examines the information content and market reaction to dividends. announcements using data from the developing Indian market. We focus on the information. content of the dividend. The market reaction to the dividend announcement has been consistently more positive during the pandemic than in previous years. The statistically pooled t-tests showed that there was a significant relationship between the pandemic and the ARs. The findings also indicate that the difference in the market's reaction to the dividend announcement was dividend announcements. It is widely believed that the market. responds to dividend announcements and dividend increases. conveying positive information while decreasing dividend yield. negative. With a sample of ninety events, announcements and ex-date, using the event study methodology with the market model, we provide evidence on the impact of the company announcements on stocks. Overall, empirical results indicate that stock prices of Indian banks are affected by dividend announcements indicating an inefficient market in semi-strong form. Keywords: banking companies, event research, OLS market model, market efficiency, dividend announcements JEL classification: G35, G14, G21. IntroductionIn India, the listed stock markets are the Bombay Stock Exchange BSE, the National Stock Exchange NSE and the Calcutta Stock Exchange CSE. These three are the largest Indian stock market. Volatility is one. This study examines the stock market's reaction to stock splits, sectors of BSE-Auto, Bankex, Consumer Sustainables, FMCG, Healthcare and IT sectors to find out whether the Indian.