Business, Management and Accounting
8 years ago

Investors Lose 20% Value After Dividend Announcement, No Gain Expected

Effect of Dividend Announcement on Shareholders' Value: Evidence from Dhaka Stock Exchange
Md Hamid Uddin

Paper Summary

Related papers

Business, Management and Accounting
8 years ago

Investors lose value after dividend announcement, supporting dividend irrelevancy hypothesis.

Corporate Governance
1 view
Business, Management and Accounting
8 years ago

Dividend Policy Boosts Shareholder Wealth: Market Prices Soar!

Corporate Governance
Working Capital
Value-based Management
2 views
Business, Management and Accounting
8 years ago

Investors lose 2.20% market value after dividend announcement in Saudi Arabia.

Corporate Governance
Asset Pricing
Earnings Management

Dividend payments don't seem to increase shareholders' value, according to a study on companies listed on Dhaka Stock Exchange. Despite theories suggesting that dividends shouldn't affect value, investors actually lost about 20% of their value around the time of dividend announcements. This loss might be offset by the current dividend yield, but overall, the evidence supports the idea that dividends don't really matter for shareholders. The study also found that dividend payments don't provide any useful information to investors.