Capturing impact of dividend announcement on stock returns: an event analysis study of KSE

Abstract

This study examines the impact of dividend announcement on stock returns of 30 non-financial sector companies listed on Karachi Stock Exchange. Daily stock returns have been used, covering period from 2007 to 2008. The study has used event analysis study methodology; a fifteen days event window has been created to examine the effects of dividend announcement on KSE stock returns. The study finds that dividend announcement has no significant impact on sample companies abnormal stock returns.