Share price reaction to dividend announcement; An event study on the Signaling Model from the Stockholm Stock Exchange
This study examines the dividend announcement effect on the common stock price by a signaling hypothesis approach on the Stockholm Stock Exchange. The event study shows a positive significant cumulative average abnormal return (CAAR) of 1,54 % for positive dividend announcement in the analyst model. For negative- and neutral announcement, the reaction is non-significant. Although, negative dividen