Proceedings of the 18th International Symposium on Management (INSYMA 2021)

Reaction of Stock Price on Dividend Announcements

Authors
Angeline Soesanto, Werner R. Murhadi, Arif Herlambang
Corresponding Author
Werner R. Murhadi
Available Online 29 June 2021.
DOI
https://doi.org/10.2991/aebmr.k.210628.005How to use a DOI?
Keywords
Abnormal Return, Dividend Announcement, Signaling Theory, Efficient Market Hypothesis, Tax Signaling
Abstract

This study aims to determine the existence of market reactions that can be seen from the presence of abnormal returns during the dividend announcements in companies listed on the Indonesia Stock Exchange (IDX) during the 2013-2017 period and find out what factors influence the Cumulative Abnormal Return (CAR) when there is a dividend announcement. The research objects were all Indonesian companies listed on IDX that distribute dividends to their shareholders over the 2013-2017 period. The results of this study indicate that the market responds positively to dividend announcements with abnormal returns right on the dividend announcement day when the company distributes higher, lower, and same dividend amounts. While, firm size, founder ownership, firm’s age, beta, sales growth, ROA, and dividend yield variables simultaneously have a significant effect on Cumulative Abnormal Return (CAR) during the dividend announcements.

Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 18th International Symposium on Management (INSYMA 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
29 June 2021
ISBN
978-94-6239-400-1
ISSN
2352-5428
DOI
https://doi.org/10.2991/aebmr.k.210628.005How to use a DOI?
Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Angeline Soesanto
AU  - Werner R. Murhadi
AU  - Arif Herlambang
PY  - 2021
DA  - 2021/06/29
TI  - Reaction of Stock Price on Dividend Announcements
BT  - Proceedings of the 18th International Symposium on Management (INSYMA 2021)
PB  - Atlantis Press
SP  - 21
EP  - 25
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210628.005
DO  - https://doi.org/10.2991/aebmr.k.210628.005
ID  - Soesanto2021
ER  -