EconPapers    
Economics at your fingertips  
 

Reaction of Stock Prices to Dividend Announcements and Market Efficiency in Pakistan

Muhammad Akbar () and Humayun Habib Baig ()
Additional contact information
Muhammad Akbar: Department of Management Sciences, Bahria University, Islamabad, Pakistan.

Lahore Journal of Economics, 2010, vol. 15, issue 1, pages 103-125

Abstract: This study tests the semi-strong form of market efficiency by investigating the reaction of stock prices to dividend announcements. It analyzes cash, stock, and simultaneous cash and stock dividend announcements of 79 companies listed on the Karachi Stock Exchange from July 2004 to June 2007. Abnormal returns from the market model are evaluated for statistical significance using the t-test and Wilcoxon Signed Rank Test. The findings suggest negligible abnormal returns for cash dividend announcements. However, the average abnormal and cumulative average abnormal returns for stock and simultaneous cash and stock dividend announcements are mostly positive and statistically significant.

Keywords: Stock prices; market efficiency; dividend announcements; Pakistan. (search for similar items in EconPapers)
JEL-codes: G14 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://121.52.153.179/JOURNAL/LJE%20Vol15-%20No.12 ... ig%20EDITED%20AC.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:lje:journl:v:15:y:2010:i:1:p:103-125

Access Statistics for this article

Lahore Journal of Economics is currently edited by Jan-Jun

More articles in Lahore Journal of Economics from Department of Economics, The Lahore School of Economics Contact information at EDIRC.
Series data maintained by Shahid Salahuddin ().

 
Page updated 2016-12-15
Handle: RePEc:lje:journl:v:15:y:2010:i:1:p:103-125