Reactions of emerging stock markets to dividend announcements during economic growth

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Reactions of emerging stock markets to dividend announcements during economic growth : evidence from India and Russia. / Berezinets, Irina V.; Bulatova, Liliia A.; Ilina, Yulia B.; Smirnov, Marat V.

In: Eurasian Economic Review, Vol. 9, No. 1, 04.03.2019, p. 71-89.

Research output: Contribution to journal › Article › peer-review

BibTeX

@article{0e6e4753e43e48c69392143e1918dd79,

title = "Reactions of emerging stock markets to dividend announcements during economic growth: evidence from India and Russia",

abstract = "This article analyzes the reactions of two emerging stock markets—Indian and Russian—to the dividend announcements of traded companies. To ensure a comparable macroeconomic environment for market players, we focus on a period of sustainable economic growth in both of the economies. The period 2010–2012 is selected for analysis since this is when both of the economies experienced growth in the aftermath of the global financial and economic crisis. The sample includes Indian and Russian companies actively traded on the national stock exchanges and that regularly paid dividends on common shares during the study period. An event study methodology was used to show that in contrast with the Indian market, the behavior of the Russian market partly contradicts the dividend signaling theory predictions. Specifically, in the Russian market, investors, on average, reacted negatively to announcements of increased, as well as decreased dividends. The article discusses the possible reasons for the revealed specifics in the market reaction in detail.",

keywords = "Dividend announcements, Dividend signaling theory, Event study, India, Russia, Stock market, SCOPUS, SCOPUS",

author = "Berezinets, {Irina V.} and Bulatova, {Liliia A.} and Ilina, {Yulia B.} and Smirnov, {Marat V.}",

note = "Reactions of emerging stock markets to dividend announcements during economic growth: evidence from India and Russia / I. V. Berezinets, L. A. Bulatova, Y. B. Ilina, M. V. Smirnov // Eurasian Economic Review. - 2019. - Volume 9, Issue 1. - P. 71-89.",

year = "2019",

month = mar,

day = "4",

doi = "10.1007/s40822-018-0111-7",

language = "English",

volume = "9",

pages = "71--89",

journal = "Eurasian Economic Review",

issn = "1309-422X",

publisher = "Springer Nature",

number = "1",

}

RIS

TY - JOUR

T1 - Reactions of emerging stock markets to dividend announcements during economic growth

T2 - evidence from India and Russia

AU - Berezinets, Irina V.

AU - Bulatova, Liliia A.

AU - Ilina, Yulia B.

AU - Smirnov, Marat V.

N1 - Reactions of emerging stock markets to dividend announcements during economic growth: evidence from India and Russia / I. V. Berezinets, L. A. Bulatova, Y. B. Ilina, M. V. Smirnov // Eurasian Economic Review. - 2019. - Volume 9, Issue 1. - P. 71-89.

PY - 2019/3/4

Y1 - 2019/3/4

N2 - This article analyzes the reactions of two emerging stock markets—Indian and Russian—to the dividend announcements of traded companies. To ensure a comparable macroeconomic environment for market players, we focus on a period of sustainable economic growth in both of the economies. The period 2010–2012 is selected for analysis since this is when both of the economies experienced growth in the aftermath of the global financial and economic crisis. The sample includes Indian and Russian companies actively traded on the national stock exchanges and that regularly paid dividends on common shares during the study period. An event study methodology was used to show that in contrast with the Indian market, the behavior of the Russian market partly contradicts the dividend signaling theory predictions. Specifically, in the Russian market, investors, on average, reacted negatively to announcements of increased, as well as decreased dividends. The article discusses the possible reasons for the revealed specifics in the market reaction in detail.

AB - This article analyzes the reactions of two emerging stock markets—Indian and Russian—to the dividend announcements of traded companies. To ensure a comparable macroeconomic environment for market players, we focus on a period of sustainable economic growth in both of the economies. The period 2010–2012 is selected for analysis since this is when both of the economies experienced growth in the aftermath of the global financial and economic crisis. The sample includes Indian and Russian companies actively traded on the national stock exchanges and that regularly paid dividends on common shares during the study period. An event study methodology was used to show that in contrast with the Indian market, the behavior of the Russian market partly contradicts the dividend signaling theory predictions. Specifically, in the Russian market, investors, on average, reacted negatively to announcements of increased, as well as decreased dividends. The article discusses the possible reasons for the revealed specifics in the market reaction in detail.

KW - Dividend announcements

KW - Dividend signaling theory

KW - Event study

KW - India

KW - Russia

KW - Stock market

KW - SCOPUS

UR - http://www.scopus.com/inward/record.url?scp=85050532840&partnerID=8YFLogxK

U2 - 10.1007/s40822-018-0111-7

DO - 10.1007/s40822-018-0111-7

M3 - Article

AN - SCOPUS:85050532840

VL - 9

SP - 71

EP - 89

JO - Eurasian Economic Review

JF - Eurasian Economic Review

SN - 1309-422X

IS - 1

ER -

ID: 36763856

Reactions of emerging stock markets to dividend announcements during economic growth: evidence from India and Russia

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