TY  - JOUR
AB  - Purpose The purpose of this paper is to investigate the stock market response to dividend announcements in high growth emerging markets of Gulf countries.Design/methodology/approach The sample includes 1,092 dividend announcements from 299 listed firms over the period 2010-2015.Findings In the environment where there is an absence of capital gain and income tax, the authors find some evidence for the stock price reaction that partly supports the signaling hypothesis. The findings show that the Gulf Cooperation Council (GCC) market is inefficient because of the leakage information before the announcement in bad news, and the delay of share price adjustment in good news. In addition, the authors report significant trading volume (TV) reaction in all the three announcements clusters, where dividends increase, decrease, and are constant, lending support to the hypothesis that the dividend change announcements have an impact on the TV response due to different investors’ preferences.Originality/value This is the first empirical paper on market reaction in share price and TV around dividend announcement using data for the majority of GCC countries.
VL  - 45
IS  - 2
SN  - 0144-3585
DO  - 10.1108/JES-03-2017-0069
UR  - https://doi.org/10.1108/JES-03-2017-0069
AU  - Felimban Razaz
AU  - Floros Christos
AU  - Nguyen Ann-Ngoc
PY  - 2018
Y1  - 2018/01/01
TI  - The impact of dividend announcements on share price and trading volume: Empirical evidence from the Gulf Cooperation Council (GCC) countries
T2  - Journal of Economic Studies
PB  - Emerald Publishing Limited
SP  - 210
EP  - 230
Y2  - 2024/04/16
ER  -