Overview

Original Research

DIVIDEND ANNOUNCEMENTS AND THEIR IMPACT ON EQUITIES LISTED IN NATIONAL STOCK EXCHANGE: AN EVENT STUDY

THANASEKARAN.T 1, SUGANTHI.G 2, and PRABAKARAN.V 3.

Vol 17, No 09 ( 2022 )   |  DOI: 10.5281/zenodo.7118744   |   Author Affiliation: Research Scholar, Assistant Professor, Department of Commerce, Karpagam Academy of Higher Education, Coimbatore, Tamil Nadu, India 1; Head, Department of Business Administration, Thiru Kollanjiappar Government Arts College, Virudhachalam, Tamil Nadu, India 2; Associate Professor, Department of Management Studies, SNS College of Technology, Coimbatore, Tamil Nadu, India 3.   |   Licensing: CC 4.0   |   Pg no: 1806-1824   |   To cite: THANASEKARAN.T, et al., (2022). DIVIDEND ANNOUNCEMENTS AND THEIR IMPACT ON EQUITIES LISTED IN NATIONAL STOCK EXCHANGE: AN EVENT STUDY. 17(09), 1806–1824. https://doi.org/10.5281/zenodo.7118744   |   Published on: 28-09-2022

Abstract

The dynamism of National Stock Exchange has been tested in the present research considering the equities listed in its 11 sectoral indices comprised of 142 companies. Event Study methodology had been adapted in the present research to check the existence of abnormal returns on account of dividend announcements. All dividend announcements made by the selected companies during 2015-16 to 2021-22 has been considered for this study. Outcomes of the present study with its AARs and CAARs confirm that the Indian Stock Market is not efficient and investors can get abnormal return with in three days on account of dividend announcement.

Keywords

Event Study, Dividend Announcement, Abnormal Return, National Stock Exchange, Indian Stock Market, Efficient Market Hypothesis