Volume : V, Issue : IV, April - 2015
Dividend Distribution Can be a Tool to Make Undue Profit in Information Asymmetry Market
Sarathbabu . A
Abstract :
Dividend policy involves extremely important financial decisions which serve as a basis of numerous theories. However, these theories have been developed in different fields, and according to some evidence
dividend policy remains a kind of dilemma in the financial cycles of corporations. This paper analyses the price reaction to cash dividend distributions by firms listed on the National Stock Exchange on both the announcement and the
ex–dividend day. As per the signaling effect, dividend distributions are indicators of future cash flow of the company.
However, this paper established that how companies take advantage of the effect to boost share price in the short run
and information asymmetry can lead to undue profit for inside traders.
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DOI : 10.36106/ijar
Cite This Article:
SarathBabu .A Dividend Distribution Can be a Tool to Make Undue Profit in Information Asymmetry Market Indian Journal of Applied Research, Vol.5, Issue : 4 April 2015
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SarathBabu .A Dividend Distribution Can be a Tool to Make Undue Profit in Information Asymmetry Market Indian Journal of Applied Research, Vol.5, Issue : 4 April 2015
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