Market Reaction on Dividend Announcement in Oman: An Event Study Methodology

Shireen Rosario and Kavita Chavali
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Shireen Rosario: Department of Accounting and Finance, College of Commerce and Business Administration, Dhofar University, Sultanate of Oman,
Kavita Chavali: Department of Accounting and Finance, College of Commerce and Business Administration, Dhofar University, Sultanate of Oman.

International Journal of Economics and Financial Issues, 2016, vol. 6, issue 1, 103-108

Abstract: The paper is an empirical study to examine the impact of dividend announcement both cash and stock on the share price performance in Oman. A sample of 21 companies listed in Muscat Securities Market pertaining to different sectors which have made dividend announcement consequently from 2012 to 2015 are taken. The study adopts the event study methodology. A window of 39 days (19 days prior and 19 days post announcement and dividend announcement date) is taken as to examine the market reaction to the dividend announcement. The fi ndings show that there is an increase in the share price and has resulted in positive average abnormal return especially in the post dividend declaration period in Oman context.

Keywords: Dividend Announcement; Market Model; Market Reaction; Share Price; Event Study (search for similar items in EconPapers)
JEL-codes: G32 G35 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (1)

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