Corporate (Dividend) Actions and Impact on Stock Abnormal Returns : A Study on Indian Context

Dividend announcement is one of the important corporate action and this action influence shareholders wealth. Investors expect to invest before the dividend date to come, it may lead to positive abnormal return in that stock and also if investors not happy with amount of dividend, it may also lead abnormal return. In this study, try to understand the stocks abnormal returns and cumulative returns in relation to dividend announcements. An event study used to understand the stocks abnormal returns and cumulative returns during event window period. In this research 120 companies randomly selected from different sectors that declared the dividend in 2016