Market Reactions to Dividend Announcements: Evidence from the Swedish Stock Market
(2024) FEKH89 20241Department of Business Administration
- Abstract (Swedish)
- Sammanfattning
Titel: Market Reactions to Dividend Announcements: Evidence from the Swedish Stock Market
Seminariedatum: 31 Maj 2024
Kurs: FEKH89, Examensarbete Kandidatnivå i Finansiering, 15 Högskolepoäng
Författare: Suprit Chowdary, Edgar Fahlström Nygren, Jacob Rothstein
Handledare: Anamaria Cociorva
Nyckelord: Annonserad Utdelning, Förändrad utdelning, Konsensusestimat, Kumulativ Abnormal Avkastning, Marknadsreaktion
Syfte: Denna studie ämnar att analysera hur förändringar i utdelning och dess differens gentemot konsensusestimat påverkar kumulativ abnormal avkastning på kort sikt.
Metod: För att undersöka studiens syfte så formulerades två hypoteser, vilka besvaras genom de olika eventfönster som... (More) - Sammanfattning
Titel: Market Reactions to Dividend Announcements: Evidence from the Swedish Stock Market
Seminariedatum: 31 Maj 2024
Kurs: FEKH89, Examensarbete Kandidatnivå i Finansiering, 15 Högskolepoäng
Författare: Suprit Chowdary, Edgar Fahlström Nygren, Jacob Rothstein
Handledare: Anamaria Cociorva
Nyckelord: Annonserad Utdelning, Förändrad utdelning, Konsensusestimat, Kumulativ Abnormal Avkastning, Marknadsreaktion
Syfte: Denna studie ämnar att analysera hur förändringar i utdelning och dess differens gentemot konsensusestimat påverkar kumulativ abnormal avkastning på kort sikt.
Metod: För att undersöka studiens syfte så formulerades två hypoteser, vilka besvaras genom de olika eventfönster som OLS-regressionen analyserar.
Teoretiskt Perspektiv: Studien baseras på tidigare forskning inom ämnet och teoretiska ramverk som den effektiva marknadshypotesen, dividend irrelevance teorin och signaleringsteorin. Studiens slutliga urval består av de 39 största börsnoterade bolagen på den svenska aktiemarknaden, med konsensusestimat och utdelningsförändringar som är täckta på ett adekvat sätt.
Resultat: Resultaten visar att förändringar av utdelningar har en signifikant påverkan på den kumulativa abnormala avkastningen i alla händelsefönster, medan avvikelserna mellan annonserade utdelningar och konsensusestimat inte visar någon betydande effekt.
Slutsats: Studien visade att endast förändringar i utdelningen har en signifikant inverkan på aktiekurserna efter annonserad utdelning. Detta belyser svårigheterna med att isolera marknadens förväntningar på utdelningar och hur de påverkar aktiekurserna. (Less) - Abstract (Swedish)
- Abstract
Title: Market Reactions to Dividend Announcements: Evidence from the Swedish Stock Market
Seminar Date: 31 May 2024
Course: FEKH89, Degree Project Undergraduate level, Business Administration, 15 ECTS
Authors: Suprit Chowdary, Edgar Fahlström Nygren, Jacob Rothstein
Advisor: Anamaria Cociorva
Keywords: Dividend Announcements, Dividend Changes, Consensus Estimates, Cumulative Abnormal Returns, Market Reactions
Research question: How do dividend changes and the discrepancies between announced dividends and consensus estimates impact stock prices for Swedish companies following the dividend announcements?
Purpose: This study aims to analyze how dividend changes and the discrepancies between announced... (More) - Abstract
Title: Market Reactions to Dividend Announcements: Evidence from the Swedish Stock Market
Seminar Date: 31 May 2024
Course: FEKH89, Degree Project Undergraduate level, Business Administration, 15 ECTS
Authors: Suprit Chowdary, Edgar Fahlström Nygren, Jacob Rothstein
Advisor: Anamaria Cociorva
Keywords: Dividend Announcements, Dividend Changes, Consensus Estimates, Cumulative Abnormal Returns, Market Reactions
Research question: How do dividend changes and the discrepancies between announced dividends and consensus estimates impact stock prices for Swedish companies following the dividend announcements?
Purpose: This study aims to analyze how dividend changes and the discrepancies between announced dividends and consensus estimates affect the cumulative abnormal return on the Swedish stock market
Methodology: To examine the study's purpose, two hypotheses are formulated, which are examined within each scenario of each event window through OLS regression analyses.
Theoretical perspective: The study is based on prior research within the subject and theoretical frameworks such as the efficient market hypothesis, dividend irrelevance theory, and signaling theory. The studied sample consists of the 39 largest publicly listed companies on the Swedish stock market, which have adequately covered consensus estimates and dividend changes.
Results: The results reveal that dividend changes consistently have a significant impact on cumulative abnormal returns across all event windows, while the discrepancies between announced dividends and consensus estimates do not show a significant effect.
Conclusion: The findings concluded that only dividend changes significantly impact stock prices following dividend announcements. Highlighting the difficulties of isolating the market's expectations about dividend announcements and how they impact stock prices. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9167503
- author
- Chowdary, Suprit LU ; Fahlström Nygren, Edgar LU and Rothstein, Jacob LU
- supervisor
- organization
- course
- FEKH89 20241
- year
- 2024
- type
- M2 - Bachelor Degree
- subject
- keywords
- Dividend Announcements, Dividend Changes, Consensus Estimates, Cumulative Abnormal Returns, Market Reactions
- language
- English
- id
- 9167503
- date added to LUP
- 2024-07-01 12:48:30
- date last changed
- 2024-07-01 12:48:30
@misc{9167503,
abstract = {{Abstract
Title: Market Reactions to Dividend Announcements: Evidence from the Swedish Stock Market
Seminar Date: 31 May 2024
Course: FEKH89, Degree Project Undergraduate level, Business Administration, 15 ECTS
Authors: Suprit Chowdary, Edgar Fahlström Nygren, Jacob Rothstein
Advisor: Anamaria Cociorva
Keywords: Dividend Announcements, Dividend Changes, Consensus Estimates, Cumulative Abnormal Returns, Market Reactions
Research question: How do dividend changes and the discrepancies between announced dividends and consensus estimates impact stock prices for Swedish companies following the dividend announcements?
Purpose: This study aims to analyze how dividend changes and the discrepancies between announced dividends and consensus estimates affect the cumulative abnormal return on the Swedish stock market
Methodology: To examine the study's purpose, two hypotheses are formulated, which are examined within each scenario of each event window through OLS regression analyses.
Theoretical perspective: The study is based on prior research within the subject and theoretical frameworks such as the efficient market hypothesis, dividend irrelevance theory, and signaling theory. The studied sample consists of the 39 largest publicly listed companies on the Swedish stock market, which have adequately covered consensus estimates and dividend changes.
Results: The results reveal that dividend changes consistently have a significant impact on cumulative abnormal returns across all event windows, while the discrepancies between announced dividends and consensus estimates do not show a significant effect.
Conclusion: The findings concluded that only dividend changes significantly impact stock prices following dividend announcements. Highlighting the difficulties of isolating the market's expectations about dividend announcements and how they impact stock prices.}},
author = {{Chowdary, Suprit and Fahlström Nygren, Edgar and Rothstein, Jacob}},
language = {{eng}},
note = {{Student Paper}},
title = {{Market Reactions to Dividend Announcements: Evidence from the Swedish Stock Market}},
year = {{2024}},
}