Joint effects of interim dividend and earnings announcements in Greece
Abstract
Purpose
The purpose of this paper is to empirically investigate stock price and trading volume reactions to simultaneous interim dividend and earnings announcements by the Greek firms listed on the Athens stock exchange (ASE).
Design/methodology/approach
Classical event study methodology was employed to examine the share price and trading volume reaction to interim dividends and earnings announcements.
Findings
Results confirm the signaling hypothesis which predicts positive market reaction to the joint dividend and earnings announcements. However, the magnitude of the price reaction initiated by the final dividend announcement seems to be higher than the one by the interim dividend announcement.
Research limitations/implications
The observations are not many, although the whole population was included, since there are no data available prior to 1998.
Practical implications
The findings are useful to researchers, practitioners and investors who have an interest in firms listed on the ASE for their proper strategic decision making.
Originality/value
For the first time, the stock price and trading volume behaviour of firms listed on the ASE around contemporaneous dividend and earnings announcement dates is examined.
Keywords
Citation
Dasilas, A., Lyroudi, K. and Ginoglou, D. (2008), "Joint effects of interim dividend and earnings announcements in Greece", Studies in Economics and Finance, Vol. 25 No. 4, pp. 212-232. https://doi.org/10.1108/10867370810918128
Publisher
:Emerald Group Publishing Limited
Copyright © 2008, Emerald Group Publishing Limited