AN EMPIRICAL STUDY OF DIVIDEND EFFECT THROUGH TWO FOLD IMPACT ON SHARE PRICE

There is abundant study available which studied impact of dividend announcement on share price but this paper is modeled in different manner as dividend announcement is not one time process but any company takes several procedural checks to ensure announcement of dividend from conception to declaration and declaration to distribution which is segregated into two-fold study in the present paper. The ASRV and CAAR tests applied on five sample companies which declared final dividend during 2017. The conclusion suggested that dividend announcement is regular practice of any company which could not change the leading trend & fashion to market.