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Achieving Long-term Stock Returns on Shares Regularly Paying Out Dividend
Abstract
The aim of this paper is to identify and characterize the relationship between conducting regular dividend payments and shaping the market value of the company within 10 years from the dividend initiation. The research hypothesis states that the longer time of regular dividend pay-outs, the higher abnormal rates of return. Empirical research shows that buy-and-hold abnormal return (BHAR) calculated for companies regularly paying out dividend is higher than the buy-and-hold abnormal return from the WIG index, and that along with an increase in the number of years of regular dividend payments BHAR increases.
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DOI: http://dx.doi.org/10.17951/h.2018.52.3.115-125
Date of publication: 2018-11-07 08:13:30
Date of submission: 2018-06-10 16:13:49
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