Investor Reaction to Information on Final Dividend Payouts on the Warsaw Stock Exchange – an Event Study Analysis

Abstract

This article analyzes the investor reaction to information on the final value of dividend payouts for companies listed on the Warsaw Stock Exchange, using the event study methodology. Our research shows that investor reaction is positive for irregular payouts and both the initiation of and the increase in payouts, while negative for the resumption and of and decreases in payouts. The magnitude of the reaction is also higher for the initiation of payouts than either the increases in, or irregular payouts.

Keywords

• information and market efficiency
• dividend
• payout policy
• investors’ reaction