Investor Reactions to Dividend Announcements of Companies Listed on the Warsaw Stock Exchange

  • Leszek Czapiewski
  • Jarosław Kubiak
Conference paper
Part of the Springer Proceedings in Business and Economics book series (SPBE)


The aim of the article is to assess the impact of changes in the quality of dividends paid and changes in the dividend rate on the return of excess rate of companies whose shares were listed on the Warsaw Stock Exchange (ESE) in 1996–2014. Following the theory of the dividend information content, according to which the dividend value is a signal to investors that higher rates of return should be expected in the case of companies which increase the dividend value or rate. The event analysis method was used as that most often used in this type of research, with the cumulative surplus return rate CAAR as a measure of investor response to change in the value of dividends paid. Three models were used as a benchmark: index, market and CAPM. The conducted studies do not give a clear picture of the results, however in the case of companies for which the dividend rate was growing a positive reaction can be observed in the event window. The published research results contain data for all cases in which a change in dividend values could be stated from year to year by companies listed on the WSE in 1996–2014.


Dividend policy Dividend rate Signalling theory Event analysis 


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© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Corporate Finance DepartmentPoznan University of Economics and BusinessPoznańPoland

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