Abstract
[Purpose] The purpose of this study is to examine the market response to the fair disclosure of a company’s long-term dividend plan. In addition, this study analyzes how the market reacts to the size of the long-term dividend plan, which is one of the disclosures of the long-term dividend plan.
 [Methodology] This study manually collects the disclosure of a company’s long- term dividend plan and empirically analyzes the market response at the disclosure date and the market response according to the size of the long-term dividend plan using abnormal returns and cumulative abnormal returns values.
 [Findings] As a result of the analysis, this study shows that there is a significant positive correlation between the long-term dividend plan disclosure and the abnormal return on the disclosure date, indicating that the market positively evaluates the company’s long-term dividend plan disclosure. This study also presents that the size of the long-term dividend plan is significantly positive correlated with the abnormal return and cumulative abnormal return. This result means that the larger the long-term dividend plan, the more favorable the investor’s response is.
 [Implications] This study is meaningful in that it empirically analyzed the market response to the disclosure of a company’s long-term dividend plan when domestic listed companies have gradually expanded their disclosure of shareholder return policies as part of shareholder-friendly policies.
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