Stock market reaction to dividend announcements - The case of FMCG industry listed on HOSE from 2011 to 2014
Abstract
Stock price reaction to the dividend announcement is a familiar topic that has been conducted in many researches over the last few decades. However, it cannot be considered that new researchers should not carry out further because of different characters of each country, each stock market exchange or each industry. Therefore, this study will examine stock price reaction to the dividend announcements in Ho Chi Minh Stock Exchange (HOSE) for the period of 2011 to 2014. The main objective of this paper to examine the information content of dividend announcements, assuming that other types of annoucements will not affect stock market. Event study methodology is also applied in this study to analysis the stock price reaction for dividend announcement. The result shows that market response to dividend announcement in a slight significance and not immediately.