scholarly journals On the Impact of Dividend Payments on Stock Prices - an Empirical Analysis of the German Stock Market

2021 ◽  
Vol 16 (1) ◽  
pp. 255-269
Author(s):  
Konstantin Melching ◽  
Tristan Nguyen
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Signaling Theory ◽  
Share Price ◽  
Dividend Payment ◽  
Share Prices ◽  
Dividend Payments ◽  
Time Period ◽  
German Stock ◽  
The Impact

Abstract This paper examines the relation between dividend payments and stock prices of all firms in the German prime standard DAX 30 in the time period from 2012 to 2019. The irrelevance theory introduced by Miller and Modigliani states that dividend payments must not have an impact on stock prices in a perfect market. In contrast, the signaling theory and the dividend puzzle indicate that dividend payments are likely to have a profound impact on the stock price. According to our findings the ex-dividend decrease of stock prices was significantly smaller than the dividend payment. Nevertheless, the results support the impact of the dividend payment on the share price. Firstly, the existence of the ex-dividend markdown is a proof that dividend payments cause share price losses. Secondly, the study explains in particular that high dividend payments result in high share prices over the examined period. Thirdly, our analysis demonstrates a positive correlation between the dividend and the stock price development according to the signaling theory. Considering the above- mentioned results, we can conclude that the share price of a company is highly affected by the decision making of the company regarding the dividend policy.

scholarly journals The effects of dividend policy to stock prices of listed companies in Vietnam stock market

2020 ◽  
Author(s):  
Thị Lam Hồ ◽  
Thùy Phương Trâm Hồ
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Stock Price ◽  
Dividend Policy ◽  
Corporate Value ◽  
Business Managers ◽  
Dividend Payment ◽  
Share Prices ◽  
Finance Management ◽  
The Impact

Dividend policy is one of the most important policies in corporate finance management. Understanding the impact of dividend policy on the distribution of profits, corporate value and thus on the stock price is important for business managers to make policies and for investors to make investment decisions. This study is conducted to evaluate the impact of dividend policy on share prices for companies listed on Vietnam’s stock market in the period from 2010 to 2018, based on the availability of continuous dividend payment data. Using the FGLS method with panel data of 100 companies listed on the HoSE and HNX, we find evidence of the impact of dividend policy on stock prices, supporting supports the bird in the hand and the signal detection theories. The findings of this study help to suggest a few recommendations for business managers and investors.

scholarly journals Dividend tax, dividend payments and share values: a South African perspective

2014 ◽  
Vol 11 (3) ◽  
pp. 242-252 ◽  
Author(s):  
Me Stéfani Coetzee ◽  
Johannes de Wet
Keyword(s):  
South African ◽  
Share Price ◽  
Dividend Payment ◽  
Share Prices ◽  
Study Approach ◽  
Dividend Payments ◽  
African Perspective ◽  
The Impact ◽  
Dividend Tax ◽  
Payment Policies

The study investigates the impact of changes in dividend taxes on dividend payment policies and in turn, the impact of dividend payments on share prices. An event study approach is used to analyse the share price movements before, on and after dividend announcement dates. The results for companies of which the dividend paid resulted in an increase in the dividend payout ratio were that share prices responded positively to the announcement on the announcement date and for the few days thereafter. The findings again underline the paradoxical nature of dividends and although a better understanding of the impact of dividends on South African companies was gained, the dividend puzzle remains largely unsolved.

scholarly journals The Impact of Dividend Policy on Stock Price Volatility in Pakistan

2019 ◽  
Vol IV (I) ◽  
pp. 506-515
Author(s):  
Ziaullah Shah ◽  
Shehzad Khan ◽  
Muhammad Faizan Malik
Keyword(s):  
Panel Data ◽  
Stock Price ◽  
Dividend Policy ◽  
Price Volatility ◽  
Fixed Effect Model ◽  
Share Prices ◽  
Dividend Payments ◽  
Effect Model ◽  
Dividend Irrelevance ◽  
The Impact

The objective of this study is to inspect dividend policy influence on volatility of share prices. For investigation seven Non-financial segment/sectors have been selected. A sample of 137 firms who paid four dividend payments listed at PSX is analysed for the period of 2007-2017.Proxy for policy of dividend are earning per share, Payout ratio, dividend yield, while assets growth and firm size are taken as control variables. OLS regression model has been initially applied on panel data. The outcomes of fixed effect model are focused. Overall outcomes of the study confirmed that prices of stock is significantly influenced by policy of dividend and reject dividend irrelevance theory.

scholarly journals ANALISIS PENGARUH RASIO KINERJA KEUANGAN TERHADAP HARGA SAHAM PT BANK MANDIRI PERSERO PERIODE 2014 – 2019

GANEC SWARA ◽  
2021 ◽  
Vol 15 (1) ◽  
pp. 963
Author(s):  
I KETUT KUSUMA WIJAYA
Keyword(s):  
Financial Performance ◽  
Stock Prices ◽  
Stock Price ◽  
Supply And Demand ◽  
Share Price ◽  
Financial Reports ◽  
Financial Ratio ◽  
Share Prices ◽  
Performance Variables ◽  
Simultaneous Test

     Share prices occur according to market supply and demand. Demand for shares is influenced by investors' expectations of the issuing company. The better the financial performance of a company, the higher investor expectations will be. This results in the shares becoming increasingly attractive and the share price will be higher. Conversely, if a company's financial performance is not good, investors' expectations will be low, so investors are not interested in investing in these shares. This causes the stock price to fall. The company's financial performance can be done by analyzing financial reports. This study aims to determine the effect of financial performance ratios on stock prices. The analytical tool used is multiple linear regression and hypothesis testing is done by partial test (T-test) and simultaneous test (F-test) and standardized coefficient test.     Based on the research results that simultaneously the financial ratio variable does not have a significant effect on stock prices. Meanwhile, only partially the NPM variable affects stock prices. Meanwhile, the financial performance variables (CAR, ROA, and LDR) do not affect stock prices. For the adjusted R2 value of 99.80%, it means that this value means that the variation of the independent variable which can explain the dependent variable is 99.80% and the remaining 2% is the variation of other variables that are not explained in the model.

How does capital market respond to Certified Emission Reductions (CERs) announcements in India

2019 ◽  
Vol 45 (7) ◽  
pp. 950-965 ◽  
Author(s):  
Praveen Kumar ◽  
Mohammad Firoz
Keyword(s):  
Event Study ◽  
Stock Prices ◽  
Abnormal Returns ◽  
Share Price ◽  
Emission Reductions ◽  
Content Type ◽  
Share Prices ◽  
The Mean ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to analyze the relationship between Certified Emission Reductions (CERs) information and a firm’s stock prices. Design/methodology/approach The present study is based on 193 CERs announcements by Indian firms over a 13-year period 2005–2017. The event study methodology is used to examine the impact of CERs announcements on a firm’s share prices. Findings The study suggests that the issuance of CERs did not produce any significant abnormal return. More specifically, the outcomes of event study shows that over a two-day event window from the event day to the day after the event (i.e. days 0 to 1), the mean and median of AARs are −0.25 and −0.34 percent, respectively. The abnormal returns on day 1 are not statistically significant as per the t-test. Moreover, the mean and median of abnormal returns after one day (−1) are negative, indicating that investors react negatively to CERs announcements. However, the mean and median of CAARs over both the two-day (i.e. days −1 to 0 and days 0 to +1) and three-day (i.e. days −1 to +1) event windows are positive, but not statistically significant based on the t-test. Research limitations/implications The findings of the study are quite comprehensive, relatively used only market-based criteria of a firm’s financial performance, e.g., share price, at times, inhibits generalizing the results. Originality/value To the best of the author’s knowledge, the present study is a first of its kind to investigate the relationship between the CERs information and a firm’s stock prices.

scholarly journals Impact of Accounting Information on Share Price: Empirical Evidence from Pakistan Stock Exchange

2016 ◽  
Vol 3 (1) ◽  
pp. 124
Author(s):  
Muhammad Asif ◽  
Kashif Arif ◽  
Waqar Akbar
Keyword(s):  
Capital Market ◽  
Stock Prices ◽  
Stock Exchange ◽  
Explanatory Power ◽  
Accounting Information ◽  
Time Frame ◽  
Share Price ◽  
Share Prices ◽  
The Impact ◽  
The Relationship

Purpose—The purpose of this paper is to examine the relationship between accounting information and share price. In order to achieve this, a model that includes specific accounting ratios (earning per share, book value per share, capital employed per share and operating cash flow per share) and shares a price is developed. Design/methodology/approach—The data were collected from the companies listed in KSE-30 index. The time frame spans from 2006 to 2013 and OLS regression models were used to examine the relationshipsFindings—The resulting evidence suggest that accounting information parameters have significant influence on share price and they have joint explanatory power in determining stock prices. This research finds the consistent results with pervious empirical researches.Originality/value—The present study adds to the existing literature by examining the impact of accounting information on share prices within the context of an emerging capital market such as Pakistan Stock Exchange using KSE-30 companies. This is believed to be the first study which considers the aforementioned issues in the Pakistan’s capital market environment.

scholarly journals The Impact of Disclosure Sentiment on the Share Prices of Russian Companies

2021 ◽  
Vol 15 (2) ◽  
pp. 5-15
Author(s):  
Maksim Kopyrin ◽  
Iuliia Naidenova
Keyword(s):  
Stock Prices ◽  
Information Disclosure ◽  
Stock Price ◽  
Positive Impact ◽  
News Item ◽  
Marginal Effect ◽  
Share Prices ◽  
Stock Price Reaction ◽  
Tone Level ◽  
The Impact

Information about companies published in a news feed is invariably tinted by emotional tonality. As such, resultingperceptions may influence the opinion of market players, and consequently affect the dynamics of a company’s shareprice. This study aims to evaluate various hypotheses about the impact of the tone of news items regarding dividends,capital expenditures, and development on the stock prices of Russian companies. Information disclosure is extensivelystudied, and there have been limited studies on the effect of disclosures on Russian companies. However, until now, therehave been no research studies which verify hypotheses on the influence of news sentiment on corporate share prices inthe Russian market. This analysis was conducted using data from 49 Russian public companies included in the Moscow exchange indexover the period from the end of 2017 to the beginning of 2019. To account for the proximate impact of news items onconsequential market phenomena, an event study methodology was applied in order to estimate and construct themodels of dependency of cumulative abnormal return (CAR) on news tone level, and control for financial and nonfinancialfactors. Our results provide evidence for the positive impact of the tone of news texts on the share prices of Russian companies.The increase in news tone by one standard deviation leads to a cumulative abnormal stock return increase of 0.26percentage points. This result is consistent with previous research conducted on data from developed stock markets.Moreover, the relationship between the tone or sentiment level of a news item and the stock price reaction is linear,without the diminishing marginal effect. Our conclusions should prompt companies to invest effort in delivering information in a tonally positive way,highlighting the most positive news. Investors, in turn, should rationally approach the interpretation of publishedinformation.

scholarly journals THE INFLUENCE OF USING FUNDAMENTAL AND TECHNICAL ANALYSIS ON SHARE PRICES

2021 ◽  
Vol 5 (2) ◽  
pp. 103-111
Author(s):  
Firdaus Gusti Redha romadi putra ◽  
Eni Wuryani
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Sample Selection ◽  
Technical Analysis ◽  
Share Price ◽  
Return On Assets ◽  
Book Value ◽  
Share Prices ◽  
Food And Beverage

This study aims to determine the effect of the variables contained in fundamental and technical analysis of stock prices. Variables used include Earning Per Share, Return On Assets, Book Value Per Share, Price to Book Value, Past Share Prices, Dup and Ddown. Sample selection uses saturated samples by using all food and beverage companies listed on the Indonesia Stock Exchange in the 2014-2018 period. The data analysis technique used is regression analysis using SPSS 23. The results of the study show that simultaneously all variables affect the stock price. Partially Earning Per Share, Price to Book Value, Past Share Prices, and Ddown have a significant effect on stock prices, while Return On Assets, Book Value Per Share, and Dup have no significant effect on stock prices.

scholarly journals DPR Sebagai Pemediasi Antara CAONS, DTAR, Dan GCG Pada Harga Saham

2021 ◽  
Vol 17 (1) ◽  
pp. 202-224
Author(s):  
Ainun Jariah
Keyword(s):  
Path Analysis ◽  
Stock Prices ◽  
Stock Price ◽  
Investment Decisions ◽  
Price Volatility ◽  
Share Price ◽  
Stock Price Volatility ◽  
Research Results ◽  
Share Prices ◽  
Dividend Policies

The company's performance projections are the focus of investors, especially investment decisions, funding decisions, and dividend policies, plus GCG which contribute to stock price volatility. The purpose of his research to detect the influence of CAONS, DTAR, and GCG individually and simultaneously on DPR and share prices, with DPR as a mediator. The number of samples 37 industry company registered on the BEI during 5 years since 2012. Analysis of data is path analysis and sobel tests for mediation variables. The research results explain that partially DTAR and GCG have a significant effect on DPR. but the share prices all three variables have no significant impact . Simultaneously CAONS, DTAR, and GCG have a significant impact on DPR and than no significant on share price. DPR has an effect and significant on share prices. Partially and simultaneously CAONS, DTAR, and GCG have no relationship to stock prices through DPR, and DPR is only able to mediate CAONS to stock prices. Keyword: CAONS, DTAR, GCG, DPR, and Stock Prices.

scholarly journals Underestimating risk leading to the collapse of a market leader in tourism

2022 ◽  
Vol 132 ◽  
pp. 01011
Author(s):  
Jana Janíková ◽  
Marek Vochozka ◽  
Martin Votava
Keyword(s):  
Stock Prices ◽  
Negative Impact ◽  
Moving Average ◽  
Share Price ◽  
Travel Agency ◽  
Effect Analysis ◽  
Share Prices ◽  
Cause And Effect Analysis ◽  
Market Leader ◽  
The Impact

The topic of this paper, underestimating risk leading to the collapse of the market leader in tourism, is demonstrated on the example of the British travel agency Thomas Cook, which at one time was one of the oldest and largest travel agencies in the world. The aim of this paper is to analyze the development of the stock prices of Thomas Cook from May 13, 2018 to May 19, 2019 and the factors that had an impact on the share price of this company in the monitored period. The base source of data are the share prices of the travel agency Thomas Cook in the specified period from May 13, 2018 to May 19, 2019 published by MarketWatch. A statistical description of time series is used, a moving average trend line is displayed, and a cause-and-effect analysis evaluating the impact of the published information on the value of Thomas Cook’s stocks is carried out. The general lesson for companies resulting from this contribution is that every negative event, announcement or piece of information has a negative impact on the value of a company’s shares and a collapse could happen even to the leader of a given industry. The collapse of Thomas Cook provides lessons for companies doing business in tourism, so that in the event of a planned merger, a suitable company is selected, the company’s funds are under control and development trends in the field are monitored.

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