S. Kumar Pradhan; R. Kasilingam
Volume 6, Issue 1 , January 2016, , Pages 13-21
Abstract
The study attempts to find out the impact of buyback announcement on share price. Paired sample T-test is employed to compare share price before and after the buyback announcement. The analysis of variance is also used to find out whether there is any significant difference among industries in the price ...
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The study attempts to find out the impact of buyback announcement on share price. Paired sample T-test is employed to compare share price before and after the buyback announcement. The analysis of variance is also used to find out whether there is any significant difference among industries in the price change due to buyback announcement. The study is carried out from 1st January 2005 to 31st December 2012. The estimation window period is taken as 10 days before and after announcement of buyback. Market adjusted model is used to calculate the abnormal return during the window period. The study concludes that the buyback announcement do not have impact on share price in industry wise analysis but have partial impact on share price in subject to company wise analysis. The abnormal returns and cumulative abnormal returns of the most of companies are positive in both long run and short run.
B. Walter Okibo; G. Chateya Alinyo
Volume 3, Issue 3 , July 2013, , Pages 199-214
Abstract
Effects of dividend policy on corporate financial growth, is a major concern of most entities. Whether dividends have an influence on the value of the firm, is an important question in dividend policy. This study aimed at investigating the effects of dividend policy on financial growth of media firms. ...
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Effects of dividend policy on corporate financial growth, is a major concern of most entities. Whether dividends have an influence on the value of the firm, is an important question in dividend policy. This study aimed at investigating the effects of dividend policy on financial growth of media firms. The study was conducted in Nairobi at The Nation media Group Headquarters. Respondents were senior managers, middle level managers and ordinary shareholders. Descriptive research design was used to describe the nature, behavior and factors’ contributing to the study as a case study approach was adopted. Stratified random sampling technique was used to pick a sample size of 215 respondents to carry out the study. The significance of the study was to formulate dividend policies that suit financial environment, bring awareness to workers on how to deal with the shareholders on dividends issues and also to assist in determination of how much debt to be employed in the capital structure. The study revealed that investment policy on dividend payout affects financial growth of the firm through division of earnings between the stockholders and reinvestment into long-term projects. The study concluded that dividend policy is an integral decision in financial management because it maximizes shareholder’s wealth and has relevance on stock prices and firm’s value. The study therefore recommended that the firm should adopt an optimal dividend policy and effective and efficient capital structure which creates a balance between division of earnings and investment in long term projects.