Refine your search
Collections
Co-Authors
Journals
Year
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z All
Dahal, Mahesh
- Market Reaction to Dividend Announcements Before and During COVID-19 - Evidence from Banking Sector
Abstract Views :147 |
PDF Views:81
Authors
Mahesh Dahal
1,
Joy Das
2
Affiliations
1 Research Scholar, Department of Commerce, Tripura University, Suryamaninagar – 799022, Tripura, IN
2 Assistant Professor, Department of Commerce, Tripura University, Suryamaninagar – 799022, Tripura, IN
1 Research Scholar, Department of Commerce, Tripura University, Suryamaninagar – 799022, Tripura, IN
2 Assistant Professor, Department of Commerce, Tripura University, Suryamaninagar – 799022, Tripura, IN
Source
SDMIMD Journal of Management, Vol 14, No 1 (2023), Pagination: 35-49Abstract
The present study documented the behaviour of stock of the Indian banking sector around the announcements of dividends before and during the global health crisis of 2019. The study considered all the banks in the Indian banking sector that have announced the dividend from January 2015 to December 2021 and conducted the analysis using event study methodology with Multi-Index Model (MIM). The study found that during the pre-crisis period, the stock of the PSU banks were more sensitive towards the announcements when dividends were decreased compared to the announcements when it was increased. While, stock of private banks was significantly impacted by both positive and negative dividend announcements, however, the impact of negative dividend announcements was severe and more prolonged than that of positive dividend announcements. Further, during the COVID 19 Pandemic, it is witnessed that information relating to dividend announcement has positively affected the behaviour of the banking sector stock.Keywords
COVID-19 Pandemic, Dividend Announcements, Event Study Methodology, Indian Banking Sector, Multi- Index Model.References
- Aharony, J., & Swary, I. (1980). Quarterly dividend and earnings announcements and stockholders’ returns: An empirical analysis. The Journal of Finance, 35(1), 1-12. https://doi.org/10.1111/j.1540-6261.1980.tb03466.x DOI: https://doi.org/10.1111/j.1540-6261.1980.tb03466.x
- Alli, K.L., Khan, A.Q. & Ramirez, G.G. (1993), Determinants of corporate dividend policy: A factorial analysis, The Financial Review, 28(4), 523-547. https:// doi.org/10.1111/j.1540-6288.1993.tb01361.x DOI: https://doi.org/10.1111/j.1540-6288.1993.tb01361.x
- Anwar, S., Singh, S., & Jain, P. K. (2015). Cash dividend announcements and stock return volatility: evidence from India. Procedia Economics and Finance, 30, 38-49. https://doi.org/10.1016/S2212-5671(15)01253-8 DOI: https://doi.org/10.1016/S2212-5671(15)01253-8
- Anwar, S., Singh, S., & Jain, P. K. (2017). Impact of cash dividend announcements: Evidence from the Indian manufacturing companies. Journal of Emerging Market Finance, 1, 1-32. https://doi. org/10.1177/0972652716686238 DOI: https://doi.org/10.1177/0972652716686238
- Asquith, P. and Mullins, D. (1983). The impact of initiating dividend payments on shareholders wealth, Journal of Business, 56(1),77-96. https://doi.org/10.1086/296187 DOI: https://doi.org/10.1086/296187
- Bajaj, M. and Vijh, A. (1990). Dividend clienteles and the information content of dividend changes. Journal of Financial Economics,26, 193-219. https://doi. org/10.1016/0304-405X(90)90003-I DOI: https://doi.org/10.1016/0304-405X(90)90003-I
- Berezinets, I., Ilina, Y., & Bulatova, L. (2015). Dividend announcements impact on stock returns: Evidence from the emerging market of India. Graduate School of Management SPbU.
- Berezinets, I., Ilina, Y., Smirnov, M., & Bulatova, L. (2017). How does stock market react to dividend surprises? Evidence from emerging markets of India and Russia. Journal of Asia-Pacific Busines, 18(3), 153-179. https:// doi.org/10.1080/10599231.2017.1346407 DOI: https://doi.org/10.1080/10599231.2017.1346407
- Bhattacharya, S. (1979). Imperfect information, dividend policy and the ‘bird-in-the-hand’ fallacy. Bell Journal of Economics, 10(1), 259-270. https://doi. org/10.2307/3003330 DOI: https://doi.org/10.2307/3003330
- Brickley, J. A. (1983). Shareholder wealth, information signaling and the specially designated dividend: An empirical study. Journal of Financial Economics, 12(2), 187-209. https://doi.org/10.1016/0304- 405X(83)90035-1 DOI: https://doi.org/10.1016/0304-405X(83)90035-1
- Brown, S. J., & Warner, J. B. (1980). Measuring security price performance. Journal of Financial Economics, 8(3), 205-258. https://doi.org/10.1016/0304- 405X(80)90002-1 DOI: https://doi.org/10.1016/0304-405X(80)90002-1
- Charest, G. (1978). Dividend information, stock returns, and market efficiency-II. Journal of Financial Economics. 297-330. https://doi.org/10.1016/0304- 405X(78)90033-8 DOI: https://doi.org/10.1016/0304-405X(78)90033-8
- Fama, E. F. (1970). Efficient capital markets: A review of theory and empirical work. The journal of Finance, 25(2), 383-417. https://doi.org/10.2307/2325486 DOI: https://doi.org/10.1111/j.1540-6261.1970.tb00518.x
- Fama, E. F., Fisher, L., Jensen, M., & Roll, R. (1969). The adjustment of stock prices to new information. International Economic Review, 10(1). https://doi. org/10.2307/2525569 DOI: https://doi.org/10.2307/2525569
- Gunasekaragea, A., & Power, D. M. (2002). The postannouncement performance of dividend-changing companies: The dividend-signalling hypothesis revisited. Accounting & Finance, 42(2), 131-151. https://doi. org/10.1111/1467-629X.00071 DOI: https://doi.org/10.1111/1467-629X.00071
- Jain, S., & Gupta, V. K. (2020). Effect of dividend on stock price: An Indian perspective. Management and Accounting Review, 19(2), 37-59.
- John, K. & Williams, J. (1985). Dividends, dilution and taxes: A signalling equilibrium. Journal of Finance, 40(4),1053- 1070. https://doi.org/10.1111/j.1540-6261.1985. tb02363.x DOI: https://doi.org/10.1111/j.1540-6261.1985.tb02363.x
- Kumar, P.C. & Tsetsekos, G.P. (1999). The differentiation of emerging equity markets. Applied Financial Economics, 9(5), 443-453. https://doi. org/10.1080/096031099332104 DOI: https://doi.org/10.1080/096031099332104
- Kumar, S. (2017). New evidence on stock market reaction to dividend announcements in India. Research in International Business and Finance, 39, 327-337. https://doi.org/10.1016/j.ribaf.2016.09.009 DOI: https://doi.org/10.1016/j.ribaf.2016.09.009
- Kumar, S., & G, R. (2013). Does the dividend announcement matter in the Indian stock market? Asia-Pacific Journal of Management Research and Innovation, 9(1), 1-7. https://doi.org/10.1177/2319510X13483502 DOI: https://doi.org/10.1177/2319510X13483502
- La Porta, R., Lopez-de-Silanes, F., Shleifer, A. & Vishny, R. (2000). Agency problems and dividend policies around the world. Journal of Finance, 55(1), 1-33. https://doi. org/10.1111/0022-1082.00199 DOI: https://doi.org/10.1111/0022-1082.00199
- Linter, J. (1956). Security prices, risk and maximal gains from diversification. Journal of Finance, 20(4), 587- 615. https://doi.org/10.2307/2977249 DOI: https://doi.org/10.1111/j.1540-6261.1965.tb02930.x
- Lonie, A., Abeyratna, G., Power, D. & Sinclair, C. (1996). The stock market reaction to dividend announcements. Journal of Economic Studies, 23(1), 32-52. https://doi. org/10.1108/01443589610106534 DOI: https://doi.org/10.1108/01443589610106534
- MacKinlay, A. C. (1997). Event studies in economics and finance. Journal of Economic Literature, 35(1), 13-39.
- Mallikarjunappa, T., & Manjunatha, T. (2009). Stock price reactions to dividend announcements. Journal of Management and Public Policy, 1(1), 43-56.
- McCluskey, T., Burton, B. M., Power, D. M., & Sinclair, C. D. (2006). Evidence on the Irish stock market’s reaction to dividend announcements. Applied Financial Economics, 16(8), 617-628. https://doi. org/10.1080/09603100600639058 DOI: https://doi.org/10.1080/09603100600639058
- Mehta, C., Jain, P. K., & Yadav, S. S. (2014). Market reaction to stock dividends: Evidence from India. Vikalpa, 39(4), 55-74. https://doi.org/10.1177/0256090920140405 DOI: https://doi.org/10.1177/0256090920140405
- Mishra, C., & Narender, V. (1996). Dividend policies of SoEs in India- An analysis. Finance India, X(3), 633- 645.
- Modigliani, F., & Miller, M. (1961). dividend policy, growth and valuation of shares. Journal of Business, 34, 411- 433. https://doi.org/10.1086/294442 DOI: https://doi.org/10.1086/294442
- Naceur, S., Goaied, M. & Belanes, A. (2006). On the determinants and dynamics of dividend policy. International Review of Finance, 6, 1-23. https://doi.org/10.1111/ j.1468-2443.2007.00057.x DOI: https://doi.org/10.1111/j.1468-2443.2007.00057.x
- Ozo, F. K., & Arun, T. G. (2019). Stock market reaction to cash dividends: evidence from the Nigerian stock market. Managerial Finance, 45(3), 366-380. https://doi. org/10.1108/MF-09-2017-0351 DOI: https://doi.org/10.1108/MF-09-2017-0351
- Pacicco, F., Vena, L., & Venegoni, A. (2018). Event study estimations using Stata: The study command. The Stata Journal, 18(2), 461-476. https://doi. org/10.1177/1536867X1801800211 DOI: https://doi.org/10.1177/1536867X1801800211
- Pandey, D. K., Kumari, V., & Tiwari, B. K. (2022). Impacts of corporate announcements on stock returns during the global pandemic: evidence from the Indian stock market. Asian Journal of Accounting Research. https://doi. org/10.1108/AJAR-06-2021-0097 DOI: https://doi.org/10.2139/ssrn.3851438
- Park, N. K. (2004). A guide to using event study methods in multi‐country settings. Strategic Management Journal, 25(7), 655-668. https://doi.org/10.1002/smj.399 DOI: https://doi.org/10.1002/smj.399
- Peterson, P. P. (1989). Event studies: A review of issues and methodology. Quarterly Journal Of Business and Economics, 36-66.
- Petit, R. (1972). Dividend announcements, security performance and capital market efficiency. Journal of Finance, 27(5), 993-1008. https://doi. org/10.1111/j.1540-6261.1972.tb03018.x DOI: https://doi.org/10.1111/j.1540-6261.1972.tb03018.x
- Prakash, N., & Yogi, L. (2022). Market reaction to dividend announcements during pandemic: An event study. Vision, 1-9. https://doi.org/10.1177/09722629211066288 DOI: https://doi.org/10.1177/09722629211066288
- Rane, A., & Guntur, R. A. (2017). Dividend announcement and market efficiency- An empirical study on service sector companies listed in BSE. SDMIMD Journal of Management, 8(1), 1-10. https://doi.org/10.18311/ sdmimd/2017/15714 DOI: https://doi.org/10.18311/sdmimd/2017/15714
- Robiyanto, R., & Yunitaria, F. (2022). Dividend announcement effect analysis before and during the COVID 19 pandemic in the Indonesia Stock Exchange. SN Business and Economics, 2(2), 1-22. https://doi. org/10.1007/s43546-021-00198-8 PMid:35075449 PMCid:PMC8771622 DOI: https://doi.org/10.1007/s43546-021-00198-8
- Saravanakumar, S. (2011). Impact of Dividend Announcement on Indian Bourses. Global Business Review, 12(3), 401- 413. https://doi.org/10.1177/097215091101200304 DOI: https://doi.org/10.1177/097215091101200304
- Walter, J. E. (1963). Dividend policy: Its influence on the value of the enterprise. The Journal of Finance, 18(2), 280-291. https://doi.org/10.1111/j.1540-6261.1963. tb00724.x DOI: https://doi.org/10.1111/j.1540-6261.1963.tb00724.x