The Chinese Stock Dividend Puzzle

Pan, Rulu; Tang, Xiangxi; Tan, Yongfeng; Zhu, Qiaoqiao

doi:10.2753/ree1540-496x500310

Cited by 13 publications

(10 citation statements)

References 16 publications

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“…The negative relationship between dividend announcements and share price also found by Karim (2010) for London Stock Exchange, Vazakidis and Athianos (2010) for Athens Stock Exchange, Mamun et al (2013) for Bangladesh, Samwel et al (2014) for Nairobi Securities Exchange and Abbas (2015) for Damascus Stock Exchange. On the other hand our findings do not support those of Lukose and Rao (2010), Akron (2011), Miletic (2011), Sheikhbahaei et al (2011), Suwanna (2012, Demontis (2013), Perepeczo (2014), Liu and Chi (2014), Pan et al (2014) and Asiri (2014).…”

Section: Resultscontrasting

confidence: 56%

Market Reaction to Dividend Announcement: Evidence from Turkish Stock Market

Kadioglu¹,

Telceken²,

Ocal³

2015

IBR

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Abstract:This study investigates market reactions to cash dividend announcements by analyzing abnormal returns around the declaration date in Borsa Istanbul. The study applies a panel regression method to a data set including 902 announcement made by 118 companies during the period from 2003 to 2015. It is found that there is a significant, negative relationship between cash dividends per share and abnormal returns following the announcement of dividends. Thus, the results support the tax-clientele effect hypothesis. When a given company announces cash dividends, shareholders start to sell their holdings in order to avoid more taxation in the future; therefore, market prices decrease. Furthermore, the results suggest that there is no statistically significant information leakage prior to the announcement date, and it seems that the inefficiency of the market decreases over time as prices adapt to new information more quickly.

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Section: Resultscontrasting

confidence: 56%

Market Reaction to Dividend Announcement: Evidence from Turkish Stock Market

Kadioglu¹,

Telceken²,

Ocal³

2015

IBR

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“…Recent research also provides for a positive influence of these corporate actions. While Pan et al. (2014) find positive impacts of dividend announcements, Ahsan et al.…”

Section: Introductionmentioning

confidence: 92%

Impacts of corporate announcements on stock returns during the global pandemic: evidence from the Indian stock market

Pandey

Kumari

Tiwari

2022

AJAR

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PurposeThe authors examine the impacts of corporate announcements on stock returns during the pandemic stress.Design/methodology/approachThe authors employ the event study methodology with the market model on a sample of 90 events (announcement and ex-date).FindingsThe authors find that all the corporate announcements do not impact the stock returns in a similar pattern. While the bonus announcement, ex-bonus and ex-split events led to positive significant abnormal returns on the event date, the rights issue and stock-split announcements failed to influence the stock returns. The findings suggest that before making such announcements, the corporates should wait until the market recovers because even the positively impacting events result in negative market responses during pandemic stress.Practical implicationsThis study will guide the policymakers to stimulate share prices during such pandemics with the help of various corporate announcements. The investors will be assisted in understanding the stock market mechanism and making wise decisions before reacting to corporate actions during a pandemic or emergency period. While the policymakers are concerned with influencing the share prices, the investors are concerned with the composition of the risk-return parameters in their portfolio. This study will act as an essential investment tool for both.Originality/valueTo the best of the authors’ knowledge, the authors conduct the first-ever study to examine the impacts of corporate announcements during a pandemic stress period that significantly contributes to the literature. The authors examine the announcement effects in India and accurately anticipate that this study will be a pioneer in this field. This study also paves the way for future researches in this area.

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“…And in some cases, rational traders likely turned into noise traders [27]. On the basis of the hypothesis of bounded rationality, the more researches explained risk contagion in financial markets from the perspective of investor behavior bias, such as equity premium puzzle [28][29][30], idiosyncratic volatility puzzle [31][32][33], closed-end fund puzzle [34][35][36], and dividend puzzle [37][38][39]. In addition, the cognitive bias and irrational behavior of investors were often associated with overconfidence theory.…”

Section: The Researches Of Risk Contagion In Financial Marketsmentioning

confidence: 99%

Nonlinear Dynamics Characteristic of Risk Contagion in Financial Market Based on Agent Modeling and Complex Network

Duan

2019

Complexity

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Risk contagion is becoming a research hotspot in the field of econophysics with the rise of interdisciplinary studies and gains more and more attention from theoretical circles and practical departments. This paper proposes a new research frame to discuss the microscopic mechanism of risk contagion based on agent modeling technology and complex network theory and reveals nonlinear dynamics characteristic of risk contagion from the perspective of market participants in financial market. Based on the proposed SICM model, financial risk can transmit from susceptible agents to infected agents, to contagious agents, or to immune agents. With the increases of contagious probabilities, the simulation experiments show that (1) the amount of susceptible agents continuously decreases; (2) the amount of infected agents increases first and then decreases; (3) the amount of contagious agents increases first and then decreases with a lower speed, relative to the amount of infected agents; and (4) the amount of immune agents continuously increases. The major contribution of this paper is a new method for studying nonlinear dynamics characteristic of risk contagion, which can be used as a theoretic basis for further researches on the behavioral features of microcosmic subject and the inner mechanisms of risk contagion.

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The Chinese Stock Dividend Puzzle

Cited by 13 publications

References 16 publications

Market Reaction to Dividend Announcement: Evidence from Turkish Stock Market

Market Reaction to Dividend Announcement: Evidence from Turkish Stock Market

Impacts of corporate announcements on stock returns during the global pandemic: evidence from the Indian stock market

Nonlinear Dynamics Characteristic of Risk Contagion in Financial Market Based on Agent Modeling and Complex Network

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