Information content in dividend announcements, a test of market efficiency in Malaysian market

Ali Sheikhbahaei, Mohd. Hassan Mohd. Osman, Ismail Abd Rahman

Research output: Contribution to journalArticleResearchpeer-review

Abstract

This study investigates the market reaction to the changes in dividend announcements at the Malaysia stock exchange formally called Bursa Malaysia. Data is gathered for a sample of 356 dividend announcement made by 138 firms pined in the main market between the years 2008 to 2011. The results show that the market reacts positively to dividend increasing stocks but no significant react to the constant dividend or the decreasing group of dividend announcements. It was also observed from the information in a day prior to the announcement day that there is a probable leakage of information by the excess access to the insider information of the firms.
Original languageEnglish
Pages (from-to)38-45
Number of pages8
JournalInternational Business Research
Volume5
Issue number12
Publication statusPublished - Dec 2012
Externally publishedYes

Cite this

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abstract = "This study investigates the market reaction to the changes in dividend announcements at the Malaysia stock exchange formally called Bursa Malaysia. Data is gathered for a sample of 356 dividend announcement made by 138 firms pined in the main market between the years 2008 to 2011. The results show that the market reacts positively to dividend increasing stocks but no significant react to the constant dividend or the decreasing group of dividend announcements. It was also observed from the information in a day prior to the announcement day that there is a probable leakage of information by the excess access to the insider information of the firms.",
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Information content in dividend announcements, a test of market efficiency in Malaysian market. / Sheikhbahaei, Ali; Mohd. Osman, Mohd. Hassan; Rahman, Ismail Abd.

In: International Business Research, Vol. 5, No. 12, 12.2012, p. 38-45.

Research output: Contribution to journalArticleResearchpeer-review

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AB - This study investigates the market reaction to the changes in dividend announcements at the Malaysia stock exchange formally called Bursa Malaysia. Data is gathered for a sample of 356 dividend announcement made by 138 firms pined in the main market between the years 2008 to 2011. The results show that the market reacts positively to dividend increasing stocks but no significant react to the constant dividend or the decreasing group of dividend announcements. It was also observed from the information in a day prior to the announcement day that there is a probable leakage of information by the excess access to the insider information of the firms.

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