A Study on the Effect of  Dividend Announcement  Dates on the Stock Prices of Various IT Companies

Aaliya Nada; Julie P J

doi:10.34293/sijash.v12iS1-June.9108

Aaliya Nada Student, Department of Finance and Taxation, Bharata Mata College, Thrikkakara, Edappally, Kochi, Kerala
Julie P J Assistant Professor, Department of Finance and Taxation, Bharata Mata College, Thrikkakara, Edappally, Kochi, Kerala

DOI: https://doi.org/10.34293/sijash.v12iS1-June.9108

Keywords: Financial Data, Stock Returns, Declaration Date, Ex-Dividend Date, Record Date, Investor Behaviour, High Dividend Companies

Abstract

A research has examined the effects that dividend declarations have on stocks by studying three essential profit distribution dates including declaration date, ex-dividend date and record date. Through dividends companies distribute profits to shareholders and this payment method regulates stock market activity and investor actions. The presented research bases its findings on the analysis of financial data from three IT organizations namely Tata Consultancy Services, Mphasis and Oracle Financial Services Software Limited. Stock price changes demonstrate specific behavior patterns during the period when dividends are announced. Strategic dividend policy assessment remains vital for business stability and shareholder
contentment as shown through this research-based findings regarding stock market reactions to dividend announcements.