Stock Prices Reaction to Dividend Announcements: A Study ...

stock prices raised by 1.34% after the announcement. While those that decreased their dividend by 10% or more experienced a price decline of -3.71%. According to Michaely et al. (1995) the effects are even larger for dividend initiations with a price increase of 3.4% and omission with a mean price decrease of about -7% around the vent day. ................
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