| dc.description.abstract | This report covers an empirical study on Effect of Dividend on Stock Price in Emerging Stock Market: An Event Study on the Power & Fuel and Non-banking financial institutions (NBFIs) in Dhaka Stock Exchange (DSE), and description about market efficiency. The main goal of this research is to analyze and investigate the reactions of stock prices due to the announcements of dividend with positive and negative events in Bangladesh Power & Fuel and NBFIs. Here an Event studies have done to sense of the study period 2013 to 2017, the event window tested in this study was in span of 61 days. Where, before the record date (RD + 30) of 30 days and after the record date (RD-30) of 30 days. After analyzing, the results showed that the negative events cumulative average abnormal return (CAAR) was -0.03866 or abound (-4%) and positive events cumulative average abnormal return (CAAR) was -0.0104 or around (-1%). AARs during pre and post-announcement periods of record date were statistically insignificant. So, the announcement of the dividend recorded had no impact on the abnormal return of power & fuel and NBFIs stock in the Dhaka Stock Exchange. However, if positive and symmetrical information prevails in the market and the company stopped spreading information about the dividend before the record date, the announcement of the dividend would have affected the stock price. | en_US |
