 The dividend enigma: deciphering the effect on Indian ETF performance in stress and normal periodsIshwar Sharma, Chanchal Saini and Komal Jindal International Journal of Trade and Global Markets, 2025, vol. 21, issue 5, 493-513 Abstract: This study explored the effect of Dividend events on the performance of exchange-traded funds (ETFs) in India during both normal and stressful market conditions. While dividend effects on individual equities are well documented, their influence on ETF pricing dynamics - especially in emerging markets - remains underexplored. We utilised standard event study methodology and tested our findings across four event windows to ensure robustness. In addition, we employed both the t-test (parametric) and the Corrado test (non-parametric) statistics to check the significance of abnormal returns. We found that dividend events in normal situations provide profitable opportunities for short-term traders. They could take a long position before the ex-dividend date, as positive cumulative returns are observed before that date. After that date, a short position would be helpful for them in making profits. On the other hand, short-term traders have limited profitable opportunities during market stress; their best option is to earn by tracking market movements. Keywords: ETFs performance; dividend announcement; ex-dividend; event study; ETFs; exchange-traded funds. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijtrgm:v:21:y:2025:i:5:p:493-513 Access Statistics for this article More articles in International Journal of Trade and Global Markets from Inderscience Enterprises Ltd |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.