 Market Reaction to Dividend Announcements During Pandemic: An Event StudyNisha Prakash and Yogesh L Vision, 2025, vol. 29, issue 2, 209-217 Abstract: This study analyses the difference in stock market reactions to dividend announcement during the pandemic. The thirty constituent stocks of Sensex, the index of Bombay Stock Exchange (BSE), is used for analysis. This allows cross-industry comparison of the market reaction. The study examines stock market reactions covering 44 days around the dividend announcement dates. The primary objective of this study is to understand whether the price adjustment linked to the dividend announcement news during the pandemic was different from the earlier years. This empirical study employs the conventional event study methodology using abnormal returns (ARs) to examine the stock market reaction to dividend announcement. The market reaction to dividend announcement was increasingly positive during the pandemic, compared to previous years. The statistical pooled t-tests showed there was a significant relationship between the pandemic and ARs. The findings also indicate that the difference in the market reaction to dividend announcement was more prominent in services stocks than that in manufacturing. Further, the results also verify the weak-form of efficiency of Indian stock exchange. Keywords: Dividend; Abnormal Return (AR); Event Study; Stock Market; Pandemic; Insider Trading; Cumulative Abnormal Return (CAR) (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:sae:vision:v:29:y:2025:i:2:p:209-217 DOI: 10.1177/09722629211066288 Access Statistics for this article More articles in Vision |
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