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Title: Stock market reaction to dividend announcements: Evidence from the Greek stock market
Authors: Dasilas, Apostolos
Leventis, Stergios
Type: Article
Subjects: FRASCATI::Social sciences::Economics and Business::Finance
Issue Date: 2011
Source: International Review of Economics & Finance
Volume: 20
Issue: 2
First Page: 302
Last Page: 311
Abstract: This study investigates the market reaction to cash dividend announcements for the period 2000–2004 employing data from the Athens Stock Exchange (ASE). In particular, the paper examines both the stock price and trading volume response to dividend distribution announcements. Dividend distributions in Greece demonstrate noticeable differences to those of the US, the UK and other developed markets. First, dividends in Greece are paid annually rather than quarterly or semi-annually. Second, the Greek corporate laws 2190/1920 and 148/1967 specifically designate the minimum amount for distribution from the taxed corporate profits. Third, neither tax on dividends nor on capital gains was imposed during the period under examination. Fourth, Greek listed firms are characterized by high ownership concentration where major owners are usually involved in management and therefore have less need for dividend announcements as an information source. Despite this neutralized information and tax environment, we document significant market reaction to dividend change announcements, lending support to the “information content of dividends hypothesis”.
Other Identifiers: 10.1016/j.iref.2010.06.003
Appears in Collections:Department of Applied Informatics

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