Examination of security prices reaction to dividend announcements: a case of Companies Registered at Dar es Salaam Stock Exchange

No Thumbnail Available
Date
2012
Journal Title
Journal ISSN
Volume Title
Publisher
University of Dar es Salaam
Abstract
This study aimed at examining the stock price reaction of listed companies surrounding 41 days of the dividend announcement dates. The major objective of the study was to identify whether there is security prices reaction as a result of dividend announcements. The standard event methodology was used to analyzing the collected data from stock price reaction for dividend announcements. This method was used in analyzing empirically the collected information. The results of the findings revealed that the stock prices reactions to dividend announcements are statistically significant. These results were deduced from the six listed samples of companies on the observation period covering years from January 2005 to December, 2009.The study concludes that dividend announcement events (increase, no change or decrease) had an impact on market stock prices. This behavior of stock prices reaction is irrespective of the nature of announcements.The major contribution made to the existing research and the finance theory is that this study will further extend new way to study the stock market regarding the impact of dividend announcement on stock prices. Furthermore, for future researches who will be interested on the field of dividend policy, stock splits, dividend announcements, investments decision, future corporate performance, mergers and acquisition. They will use knowledge of this study as a reference.
Description
Available in print form
Keywords
Dividend, Security prices, Dar es Salaam Stock exchange, Tanzania
Citation
Ndyetabula, A.M (2012),Examination of security prices reaction to dividend announcements: a case of Companies Registered at Dar es Salaam Stock Exchange , master dissertation, University of Dar es Salaam available at(http://41.86.178.3/internetserver3.1.2/detail.aspx)