Price reactions to dividend policy changes on the Nigerian stock market

Adelegan, Olatundun Janet

doi:10.4314/ajep.v13i2.44189

Cited by 19 publications

(19 citation statements)

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“…This finding contradicts the efficient markets hypothesis and is consistent with results from previous studies by Olowe (1998), Oludoyi (1999) and Adelegan (2009) which found the Nigerian stock market to be informationally inefficient.…”

Section: Conclusion and Recommendationssupporting

confidence: 61%

“…Studies examining the informational efficiency of the Nigerian stock market, in particular, failed to find evidence of efficiency, and thus conclude that the Nigerian stock market is not informationally efficient (e.g. Olowe, 1998;Oludoyi, 1999 andAdelegan, 2009). Using monthly data, Olowe (1998) examined the response of stock prices to stock splits.…”

Section: Brief Review Of Relevant Literaturementioning

confidence: 99%

“…Olowe, 1998;Oludoyi 1999;Osei, 2002;Adelegan 2003Adelegan , 2009). Studies examining the informational efficiency of the Nigerian stock market, in particular, failed to find evidence of efficiency, and thus conclude that the Nigerian stock market is not informationally efficient (e.g.…”

Section: Brief Review Of Relevant Literaturementioning

confidence: 99%

“…Using weekly data, Oludoyi (1999) concludes that the evidence suggests that the Nigerian stock market is not semi strong form efficient as stock prices drift 10 weeks after the corporate earnings results had been released to the public. In a recent study, Adelegan (2009) examined the speed of adjustment of stock prices to dividend announcements for a total of 742 announcements dates. Adelegan, using the event study method, reports evidence of significant positive abnormal returns for dividend paying firms, 30 days from the date of the announcement.…”

Section: Brief Review Of Relevant Literaturementioning

confidence: 99%

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Stock Price Response to Earnings Announcements: Evidence From the Nigerian Stock Market

Afego

2013

Journal of African Business

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This paper examines the stock market reaction to annual earnings information releases using data on the Nigerian Stock Exchange. Using the event study method, the speed of reaction of the market to annual earnings information releases for a sample of 16 firms listed on the exchange is tested. Significant abnormal price reactions around earnings announcements suggest the earnings announcements contain value-relevant information. We find that the magnitude of the cumulative abnormal returns is dominated by significant reactions 20 days before the earnings release date which suggests that a portion of the market reaction may be due to private acquisition and, possibly, abuse of information by insiders. The persistent downward drift of the cumulative abnormal returns, 20 days after the announcement, is inconsistent with the efficient markets hypothesis, and therefore suggests that the Nigerian stock market does not efficiently adjust to earnings information for the sample firms within the study period.

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Section: Conclusion and Recommendationssupporting

confidence: 61%

Section: Brief Review Of Relevant Literaturementioning

confidence: 99%

Section: Brief Review Of Relevant Literaturementioning

confidence: 99%

Section: Brief Review Of Relevant Literaturementioning

confidence: 99%

See 2 more Smart Citations

Stock Price Response to Earnings Announcements: Evidence From the Nigerian Stock Market

Afego

2013

Journal of African Business

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“…Investors care about market efficiency because stock price movements affect their wealth. More generally, market inefficiency may affect consumption and investment spending and therefore influence the overall performance of an economy [10].…”

Section: Introductionmentioning

confidence: 99%

Test of the Semi-Strong Efficiency Theory in the Nigerian Stock Market: An Empirical Analysis

Ayodele¹,

Maxwell²

2017

JFA

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Abstract:This study investigates the semi-strong efficiency theory in the Nigerian stock market. The study used daily returns from the Nigerian stock market over the period of January 1, 2005, to December 31, 2013, of which about 80 companies that retained their quoting status were used as the sample for the study. A modified transfer function approach was built to show a cause and effect relationship between the output index represented by the All-Share Index of the Nigerian Stock Exchange and the input series represented by the computed index of the selected securities in the Nigerian stock market. Findings from the study showed that the coefficient of the input index is significantly different from zero implying that investors can outperform the market based on published information hence making the market be semi-strong inefficient.

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Market Microstructure in African Equity Markets

Mollah

Hassan

2013

Market Microstructure in Emerging and Developed Markets

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Price reactions to dividend policy changes on the Nigerian stock market

Cited by 19 publications

References 0 publications

Stock Price Response to Earnings Announcements: Evidence From the Nigerian Stock Market

Stock Price Response to Earnings Announcements: Evidence From the Nigerian Stock Market

Test of the Semi-Strong Efficiency Theory in the Nigerian Stock Market: An Empirical Analysis

Market Microstructure in African Equity Markets

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