DIVIDEND POLICY AND STOCK PRICE PERFORMANCE: EVIDENCE FROM THE KAZAKHSTAN STOCK EXCHANGE
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Date
2024-12-12
Authors
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Publisher
Nazarbayev University Graduate School of Business
Abstract
Theoretically, the publication of dividends does not have any impact on the
financial position of the company, since capitalization and resources remain
unchanged. Nevertheless, world practice shows that the market reacts to stock
publications about the payment of dividends. This study performed an analysis of
the impact of the publication of payments and the payment of dividends by
Kazakhstani companies on the KASE and LSE trading exchanges. The study found
that for financial companies an announcement of dividend increase positively
impacts the stock prices and investors experience positive abnormal returns.
However, for non-financial companies increase in the amount of dividends lead to
negative abnormal returns which means drop in the price of stocks. Overall the
market reacts negatively to the announcement of dividends.
Description
Keywords
Event study, Dividend announcement, Event Window, Estimation Window, Abnormal return, Market Reaction, Mean-Adjusted Return, Market Adjusted Return, OLS., Type of access: Embargo
Citation
Shynatay, Zh. (2024). Dividend Policy and Stock Price Performance: Evidence from the Kazakhstan Stock Exchange. Nazarbayev University Graduate School of Public Policy.