Open AccessStock Market Reactions to Dividend Announcements: Empirical Evidence From the Singapore Stock Market
Author(s) -
Shailender Singh,
Pooja Jain,
Voon Chen Wei
Publication year - 2018
Publication title -
international journal of accounting and financial reporting
Language(s) - English
Resource type - Journals
ISSN - 2162-3082
DOI - 10.5296/ijafr.v8i2.12949
Subject(s) - dividend , stock exchange , business , dividend yield , earnings , dividend policy , financial economics , monetary economics , stock (firearms) , share price , earnings per share , stock market , dividend payout ratio , stock price , empirical research , empirical evidence , economics , accounting , finance , mechanical engineering , paleontology , philosophy , horse , epistemology , series (stratigraphy) , engineering , biology
The present study investigates the 50 randomly selected companies from Singapore Stock Exchange to assess the impact of the dividend initiation announcement and omission announcement on the share prices of the companies under study. The study has analyzed the impact of dividend initiations announcement on the size of firms by dividing the firms into small and big categories. Further, the relationship between changes in dividend and company’s future earnings is also analyzed. The study finds that the dividend initiation announcement’s impact on the share prices of Singapore companies is trivial and uncertain.