VOL- 10, ISSUE- 02, PUNE RESEARCH DISCOVERY (ISSN 2455-9202) JIF 3.96
10.02 DISCOVERY
PUNE RESEARCH DISCOVERY
AN INTERNATIONAL JOURNAL OF ADVANCED STUDIES
( ISSN 2455 - 9202 ONLINE ) (JIF 3.96)
(VOL 10, ISSUE 02) (MAY to JULY 2025)
VOL- 10, ISSUE- 02, PUNE RESEARCH DISCOVERY (ISSN 2455-9202) JIF 3.96
10.2.1 DISCOVERY
The aim of this study was to analyse the
impact of dividend announcements on stock prices for selected companies listed
on the Indian stock market. Using event study methodology and t-tests, the
abnormal returns (AR) and cumulative abnormal returns (CAR) were examined to
assess market reactions surrounding dividend announcements. The findings reveal
that dividend announcements did not produce significant abnormal returns for
any of the selected companies, as evidenced by p-values greater than 0.05
across all tests. This indicates that there was no statistically significant
difference in stock prices before and after dividend announcements, suggesting
that the market had already factored in the information prior to the event or
perceived these announcements as routine corporate actions.
Key Words: Dividend Announcement, Stock Price