Accounting Information, Dividend Announcement and Ex – dividend effects on Stock Returns – Evidence from Indian Market

International Journal of Economics and Management Studies
© 2017 by SSRG - IJEMS Journal
Volume 4 Issue 1
Year of Publication : 2017
Authors : Dr. Dhanya Alex, Noufal Latheef
How to Cite?

Dr. Dhanya Alex, Noufal Latheef, "Accounting Information, Dividend Announcement and Ex – dividend effects on Stock Returns – Evidence from Indian Market," SSRG International Journal of Economics and Management Studies, vol. 4,  no. 1, pp. 1-9, 2017. Crossref,


This study intends to examine the efficiency of Indian market by analyzing the impact of three events associated with the dividend announcements on stock returns. The three events considered are accounting information announcement, cash dividend announcement and ex- dividend date. Using a pure sample of 215 Indian companies which declared a cash dividend during the year 2015, a macro level analysis is done at the first stage. The results justify the signaling ability of cash dividend announcements in the Indian stock market. Sector wise analysis of 21 sectors suggests that investors’ reaction to these events could also be influenced by the life stages of companies and industries. The trend of mean cumulative abnormal returns suggests that the Indian market is not efficient over time.


Cash dividend, Market efficiency, Signaling hypothesis.


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