Issue 1, 2015

Berezinets I. V., Bulatova L. A., Ilina Yu. B., Smirnov M. V. Russian Stock Market Reactions to Dividend Announcements: Empirical Study.

The article studies reaction of the Russian stock market to dividend announcements of companies, traded at the period of 2010–2012, in the aftermath of the financial and economic crisis of 2008–2009. The study sample includes Russian companies whose shares were actively traded on the RTS (since 2012 — on the combined Moscow exchange), and who regularly paid dividends on ordinary shares during the period. The analysis evidenced that in contrast to the results obtained previously for the Indian market in Russia during the study period the market on average reacted negatively to the announcement of decreased, as well as increased amount of dividends. Based on the development and current state of the Russian stock market, specifics of dividend payments of Russian companies, the article examines in detail the reasons for such a reaction, and also compares the results obtained for the two emerging markets. Keywords: dividend announcements, stock market reaction, Russian stock market, event study analysis.

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