Market reaction to stock dividend announcement Online publication date: Wed, 04-Aug-2021
by Sulaeman Rahman Nidar; Muhammad Maraya
International Journal of Governance and Financial Intermediation (IJGFI), Vol. 1, No. 2, 2021
Abstract: The purpose of this study is to determine the return of the reaction of the announcement of stock dividend. This study uses event study approach, where the observation of the abnormal return during the event period, which is seven days prior to the announcement of up to seven days after the announcement. The method used is quantitative method. Hypothesis testing is used to see the significance of abnormal return values occurring in the event by comparing t-arithmetic with t-table and test independent sample of t-test to determine differences in the value of abnormal return of some subsample. The results of this study indicate that: 1) no positive abnormal return significantly to the announcement of stock dividend around the event period; 2) no average abnormal return is greater in companies issuing initial stock dividend compared to companies that issue stock dividend subsequent; 3) no average abnormal return is greater in companies with issuing high stock dividend ratio compared to the company that issued the low stock dividend ratio.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Governance and Financial Intermediation (IJGFI):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook