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Event study has remained one of the highly pursued areas of research in corporate finance. Studies reported in this realm empirically show that the economic model or the capital asset pricing model (CAPM) yields relatively better results with respect to the abnormal return of stocks preceded by dividend announcement by the dividend payers as compared to the statistical model, namely, constant return or market model approaches. Both models are incorporated in the study to triangulate the outcomes more accurately. A few hypotheses posited in this paper are namely, there will be significant differences in share prices of sampled companies mediated (moderated) by dividend announcement, and there will be significant differences between positive and negative average abnormal returns along with the ranks of firms.

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