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You searched Library Catalogue - Publisher: Palgrave Macmillan,
Call Number (WOU) SP CEMBA 2013 19
Author Ong, Yaw Kern
Title The impact of cash dividend announcement and their factor analyzed determinants towards the stock price in Bursa Malaysia / Ong Yaw Kern
Abstract The objective of every investor is to make profit from the stock they invested in. There are two ways by which investors can make profit from the stocks i.e., in the form of capital appreciation and dividend income. There are some contradict views as to whether the cash dividend declaration will cause significant change to the entity’s share price. Scholars like Lintner (1956) and Fama (1969) strongly believed that dividend announcement contained signal for asymmetry information which will increase the entity’s share price while noble laureates like Miller and Modigiliani (1961) advocated the dividend irrelevance theory. Various researchers have used the event study approach to confirm the impact of dividend announcement towards share price in different capital markets and the results showed disparity. This project serves to confirm the impact of cash dividend announcement and the potential determinant factors that affect the share price in Bursa Malaysia. Event study approach to test the significant of average abnormal return (AAR) and cumulative average abnormal return (CAAR) during the event windows has been adopted for this project. The period of 2010 to 2012 has been selected for testing due to the market stability. The empirical results show that share price does show significant movement after the cash dividend announcement. Nevertheless, the study fails to confirm the dividend yield, net asset per share, change in earning per share and change in price earning ratio as the underlying correlation coefficients of share price movement. This may not be a healthy sign as investors may make their investment base on market rumours from the cash dividend announcement instead of analytical skills as to the financial position of the company. For a company, declaration of dividend can be a tactic to increase its share price so as to make a greater return to investors.
Notes Final project report submitted in partial fulfilment of the requirements for the Degree of Master of Business Administration (CeMBA)
Publisher/Year Penang : School of Business and Administration, Wawasan Open University, 2013
Physical Description 77 p.; 30 cm.
Subject Wawasan Open University -- Dissertations
Subject Dividends -- Malaysia
Subject Cash flow

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