Title of article :
Share Price Reaction to Dividend Announcements and the Interaction with Earnings Announcements in the Malaysian Stock Market
Author/Authors :
Yip, Peng-Poi university of malaya - Faculty of Business and Accountancy, Malaysia , Isa, Mansor Capital Market Authority, Saudi Arabia , Kester, George W. Washington and Lee University - Department of Business Administration, USA , Lee, Siew-Peng University of Tunku Abdul Rahman - Faculty of Accountancy and Management, Malaysia
Abstract :
This study examines the market reactions to dividend announcements and the interaction with earnings announcements in the Malaysian stock market. Data was obtained for a sample of one thousand and eighty eight (1088) dividend announcements from firms whose shares were traded on the Malaysian stock exchange from 2004 to 2008. Abnormal returns were calculated using the market model. The results are partially consistent with the dividend information signalling hypothesis. There are positive abnormal returns related to dividend increase and dividend unchanged announcements, but insignificant for dividend decrease announcements. Combining dividend announcements with earnings announcements that take place well before dividend announcements, we find that both earnings and dividends exert their influence independently on share prices.
Keywords :
Dividend Announcements , Dividend Signalling , Information Content of Dividend , Interaction of Dividend with Earnings Announcements , Malaysian Stock Maket
Journal title :
Asian Journal of Business and Accounting
Journal title :
Asian Journal of Business and Accounting
