Dividend announcement effects on Malaysian stock market returns / Anastasiah Harbi

This study provides empirical evidence on the effects of unexpected dividend changes (UDC) on stock returns with respect to Malaysian economic conditions namely: (1) before the Asian financial crisis (1990-1996); (2) during the Asian financial crisis (1997-1998); (3) after the Asian financial crisis...

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Main Author:	Harbi, Anastasiah
Format:	Thesis
Language:	English
Published:	2014
Subjects:	Malaysia
Online Access:	https://ir.uitm.edu.my/id/eprint/20421/7/20421.pdf
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id	my-uitm-ir.20421
record_format	uketd_dc
spelling	my-uitm-ir.204212024-05-30T04:52:36Z Dividend announcement effects on Malaysian stock market returns / Anastasiah Harbi 2014 Harbi, Anastasiah Malaysia This study provides empirical evidence on the effects of unexpected dividend changes (UDC) on stock returns with respect to Malaysian economic conditions namely: (1) before the Asian financial crisis (1990-1996); (2) during the Asian financial crisis (1997-1998); (3) after the Asian financial crisis (1999-2007); (4) during the global financial crisis (2008-2010); and for the (5) overall period (1990-2010). The purpose of this study is to identify the exact economic conditions that stimulate investors’ reactions to changes in dividends and consequently to the stock price movements. Below and Johnson (1996) found that market reactions to dividend changes varies with respect to bullish and bearish markets respectively. The present study therefore believes the dividend signalling effects varies according to economic conditions. This study made 861 observations which consist of 264 dividend increases, 175 dividend decreases and 422 dividend of no-change for the overall period. The findings of the panel data approach reveals that the unexpected dividend changes are positive and significantly correlated with cumulative abnormal returns in the overall period (1990- 2010), during the Asian financial crisis (1997-1998) and after the Asian financial crisis (199-2007). Overall findings constitute support on the dividend signalling theory where an unexpected increase (decrease) in dividends send good"(bad) signals to investors leading stock prices to increase (decrease). On the other hand, a cross sectional approach offers similar results only in the period before the Asian financial crisis (1990-1996) and during the Asian financial crisis (1997-1998). 2014 Thesis https://ir.uitm.edu.my/id/eprint/20421/ https://ir.uitm.edu.my/id/eprint/20421/7/20421.pdf text en public mphil masters Universiti Teknologi MARA (UiTM) Faculty of Business and Management Bujang, Imbarine
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Bujang, Imbarine
topic	Malaysia
spellingShingle	Malaysia Harbi, Anastasiah Dividend announcement effects on Malaysian stock market returns / Anastasiah Harbi
description	This study provides empirical evidence on the effects of unexpected dividend changes (UDC) on stock returns with respect to Malaysian economic conditions namely: (1) before the Asian financial crisis (1990-1996); (2) during the Asian financial crisis (1997-1998); (3) after the Asian financial crisis (1999-2007); (4) during the global financial crisis (2008-2010); and for the (5) overall period (1990-2010). The purpose of this study is to identify the exact economic conditions that stimulate investors’ reactions to changes in dividends and consequently to the stock price movements. Below and Johnson (1996) found that market reactions to dividend changes varies with respect to bullish and bearish markets respectively. The present study therefore believes the dividend signalling effects varies according to economic conditions. This study made 861 observations which consist of 264 dividend increases, 175 dividend decreases and 422 dividend of no-change for the overall period. The findings of the panel data approach reveals that the unexpected dividend changes are positive and significantly correlated with cumulative abnormal returns in the overall period (1990- 2010), during the Asian financial crisis (1997-1998) and after the Asian financial crisis (199-2007). Overall findings constitute support on the dividend signalling theory where an unexpected increase (decrease) in dividends send good"(bad) signals to investors leading stock prices to increase (decrease). On the other hand, a cross sectional approach offers similar results only in the period before the Asian financial crisis (1990-1996) and during the Asian financial crisis (1997-1998).
format	Thesis
qualification_name	Master of Philosophy (M.Phil.)
qualification_level	Master's degree
author	Harbi, Anastasiah
author_facet	Harbi, Anastasiah
author_sort	Harbi, Anastasiah
title	Dividend announcement effects on Malaysian stock market returns / Anastasiah Harbi
title_short	Dividend announcement effects on Malaysian stock market returns / Anastasiah Harbi
title_full	Dividend announcement effects on Malaysian stock market returns / Anastasiah Harbi
title_fullStr	Dividend announcement effects on Malaysian stock market returns / Anastasiah Harbi
title_full_unstemmed	Dividend announcement effects on Malaysian stock market returns / Anastasiah Harbi
title_sort	dividend announcement effects on malaysian stock market returns / anastasiah harbi
granting_institution	Universiti Teknologi MARA (UiTM)
granting_department	Faculty of Business and Management
publishDate	2014
url	https://ir.uitm.edu.my/id/eprint/20421/7/20421.pdf
_version_	1804889580639354880

Dividend announcement effects on Malaysian stock market returns / Anastasiah Harbi

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