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Market Reaction on Dividend Announcement in Oman: An Event Study Methodology

Author

Listed:
  • Shireen Rosario

    (Department of Accounting and Finance, College of Commerce and Business Administration, Dhofar University, Sultanate of Oman,)

  • Kavita Chavali

    (Department of Accounting and Finance, College of Commerce and Business Administration, Dhofar University, Sultanate of Oman.)

Abstract

The paper is an empirical study to examine the impact of dividend announcement both cash and stock on the share price performance in Oman. A sample of 21 companies listed in Muscat Securities Market pertaining to different sectors which have made dividend announcement consequently from 2012 to 2015 are taken. The study adopts the event study methodology. A window of 39 days (19 days prior and 19 days post announcement and dividend announcement date) is taken as to examine the market reaction to the dividend announcement. The fi ndings show that there is an increase in the share price and has resulted in positive average abnormal return especially in the post dividend declaration period in Oman context.

Suggested Citation

  • Shireen Rosario & Kavita Chavali, 2016. "Market Reaction on Dividend Announcement in Oman: An Event Study Methodology," International Journal of Economics and Financial Issues, Econjournals, vol. 6(1), pages 103-108.
    • Handle: RePEc:eco:journ1:2016-01-14
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    References listed on IDEAS

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    More about this item

    Keywords

    Dividend Announcement; Market Model; Market Reaction; Share Price; Event Study;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy

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