title: How stock market reacts to dividend surprises: Russian and Indian experience
metadata.name: dc.contributor.author
metadata.value: Berezinets, I.V.
metadata.lang: -
metadata.name: dc.contributor.author
metadata.value: Bulatova, L.A.
metadata.lang: -
metadata.name: dc.contributor.author
metadata.value: Ilina, Y. B.
metadata.lang: -
metadata.name: dc.contributor.author
metadata.value: Smirnov, M.V.
metadata.lang: -
metadata.name: dc.date.accessioned
metadata.value: 2017-06-03T12:38:27Z
metadata.lang: -
metadata.name: dc.date.available
metadata.value: 2017-06-03T12:38:27Z
metadata.lang: -
metadata.name: dc.date.issued
metadata.value: 2016
metadata.lang: -
metadata.name: dc.identifier.uri
metadata.value: http://hdl.handle.net/11701/6437
metadata.lang: -
metadata.name: dc.description.abstract
metadata.value: This paper empirically investigates average reaction of emerging markets of Russia and India to dividend surprises on the post-crisis period 2010-2014. Traditionally, unexpected dividend component has been measured in relation to the "naïve" model, which assumes that the next period expected dividend level equals the previously paid dividend. The study proposes different, rarely applied in the dividend announcements literature analysts’ expectations-based approach to measure unexpected component of a dividend announcement. As a proxy for dividend surprise the difference between the actual dividend and the consensus analyst forecast is used. The research was conducted using event study methodology on the sample of Russian and Indian public companies, which regularly pay dividends. Obtained results of the study provide the grounds to make conclusions about the fact that Russian market on average reacts negatively to both good and bad dividend surprises; good dividend surprises on average trigger positive abnormal returns on Indian stocks, whereas bad and no surprises are associated with negative reaction of Indian market. In this research the results are discussed from the perspective of signaling theory of dividends, markets efficiency, behavioral finance, economic and legal issues. The results of the study could provide market players with an instrument of investments decision-making. For companies it is important to take into account market reaction when deciding upon dividend payments and improvement their dividend policies.
metadata.lang: en_GB
metadata.name: dc.description.sponsorship
metadata.value: Research has been conducted with financial support from the SPSU grant (project No. 16.23.1847.2015)
metadata.lang: en_GB
metadata.name: dc.language.iso
metadata.value: en
metadata.lang: en_GB
metadata.name: dc.publisher
metadata.value: Graduate School of Management, St. Petersburg State University
metadata.lang: en_GB
metadata.name: dc.relation.ispartofseries
metadata.value: Working Papers;#3(E)-2016
metadata.lang: -
metadata.name: dc.subject
metadata.value: dividend surprise
metadata.lang: en_GB
metadata.name: dc.subject
metadata.value: stock market reaction
metadata.lang: en_GB
metadata.name: dc.subject
metadata.value: emerging markets
metadata.lang: en_GB
metadata.name: dc.subject
metadata.value: event study analysis
metadata.lang: en_GB
metadata.name: dc.subject
metadata.value: abnormal return
metadata.lang: en_GB
metadata.name: dc.title
metadata.value: How stock market reacts to dividend surprises: Russian and Indian experience
metadata.lang: en_GB
metadata.name: dc.type
metadata.value: Working Paper
metadata.lang: en_GB
resources.filename: 3_WP 2016 Berezinets Bulatova Ilina Smirnov.pdf
resources.url: https://dspace.spbu.ru/bitstream/11701/6437/1/3_WP%202016%20Berezinets%20Bulatova%20Ilina%20Smirnov.pdf
resources.format: Adobe PDF
resources.size: 338,63 kB