Assistant Professor, Department of Commerce, A S college, Khanna
Online published on 8 August, 2018.
Investors try to keep themselves abreast with latest information which they gather from corporate announcements. On the basis of this information, investment strategies are given the shape and decisions are made. Investors always make attempt to maximize their return on investment and minimize risk. The information available in the market helps them to maximize return and minimize risk, i.e. they are perceived to be signals of company future. Although there are different types of announcements which companies float in market from time to time but the most important among them that influences is dividend related announcements. In this paper we have studied the impact of dividend announcements on stock price volatility. Further, the study also investigates the impact of dividend announcements on return generated by investors of 25 selected companies in five selected sectors of NSE. The results of study highlight that dividend announcements have significant impact on share prices of the company and investors can have abnormal returns from the market when companies declare dividend.
Dividend, stock price volatility, National Stock Exchange
