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Joint effects of interim dividend and earnings announcements in Greece

Apostolos Dasilas (Department of Accounting and Finance, University of Macedonia, Thessaloniki, Greece)
Katerina Lyroudi (Department of Accounting and Finance, University of Macedonia, Thessaloniki, Greece)
Demetrios Ginoglou (Department of Accounting and Finance, University of Macedonia, Thessaloniki, Greece)

Studies in Economics and Finance

ISSN: 1086-7376

Article publication date: 3 October 2008

Abstract

Purpose

The purpose of this paper is to empirically investigate stock price and trading volume reactions to simultaneous interim dividend and earnings announcements by the Greek firms listed on the Athens stock exchange (ASE).

Design/methodology/approach

Classical event study methodology was employed to examine the share price and trading volume reaction to interim dividends and earnings announcements.

Findings

Results confirm the signaling hypothesis which predicts positive market reaction to the joint dividend and earnings announcements. However, the magnitude of the price reaction initiated by the final dividend announcement seems to be higher than the one by the interim dividend announcement.

Research limitations/implications

The observations are not many, although the whole population was included, since there are no data available prior to 1998.

Practical implications

The findings are useful to researchers, practitioners and investors who have an interest in firms listed on the ASE for their proper strategic decision making.

Originality/value

For the first time, the stock price and trading volume behaviour of firms listed on the ASE around contemporaneous dividend and earnings announcement dates is examined.

Keywords

Citation

Dasilas, A., Lyroudi, K. and Ginoglou, D. (2008), "Joint effects of interim dividend and earnings announcements in Greece", Studies in Economics and Finance, Vol. 25 No. 4, pp. 212-232. https://doi.org/10.1108/10867370810918128

Publisher

:

Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited