Journal of Accounting & Taxation
June 2018 Vol 2(1), pp. 001-008
Copyright © 2018 Unified Journals
Original Research Article
Does Dividend Signaling influence the Shareholder Value: An Empirical Investigation on Listed Firms in Sri Lanka?
K.G.A. Udaya Kumara
Senior Lecturer, Department of Accountancy & Finance, Faculty of Management Studies, Rajarata University of Sri Lanka, Mihintale Sri Lanka.
Corresponding Author's Email: udayakga@gmail.com
Accepted 18th January, 2018
Abstract
This study attempts to examine whether there is significance influence of dividend news on shareholders’ value of listed firms in Sri Lanka. Particularly this study investigated market response to dividend behaviors. The study included an overall sample of 287 events of 40 listed firms during the period from 2007 to 2015. Abnormal returns were calculated from daily share prices and all share price index using well-established market model commonly used by researchers under the Event Study Methodology. The results supported the prediction of dividend signaling hypothesis. The dividend increasing firms and dividend decreasing firms revealed significant abnormal returns to confirm that dividend signals influenced the shareholders’ value.
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Cite This Article
K.G.A. Udaya Kumara.Does Dividend Signaling influence the Shareholder Value: An Empirical Investigation on Listed Firms in Sri Lanka? 2(1) 2018 pp. 001-008.
