Event Study for Efficient Market Hypothesis- Ex dividend Data

Event Study for Efficient Market Hypothesis- Ex dividend Data Dissertation example
Masters
Dissertation
Finance & Accounting
Pages 32 (8032 words)
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EVENT STUDY FOR EFFICIENT MARKET HYPOTHESIS – EX DIVIDEND DATA Abstract This study documents the ex-dividend effect on stock performances based upon a rates of taxation. Since the 1970s, there has been an assumption that the ratios of risk and reward for dividend stocks must be adjusted in order to compensate for higher levels of taxation on dividends related to capital gains…

Introduction

Anomalies in the expression of the standard, tax centric theory of stock performances have been noted and described. While a tax centric hypothesis has explanatory power, this study examines evidence that there are additional forces of corporate governance, ownership concentration, and market capitalization that can adjust the performance of dividends independent of taxation. This study is a meta-analysis describing the Western standard for market forces pertaining to dividend taxation, on the assumption that stock prices must be adjusted to less than the amount of the dividend in order to compensate for taxation. Yet comparison with Asian markets introduces exceptions to that premise. Ultimately, more data is needed in order to falsify the tax centric hypothesis, however this principle is a subject to modification and interference by other market forces that influence the behaviors of investors and the performance of stocks. EVENT STUDY FOR EFFICIENT MARKET HYPOTHESIS – EX DIVIDEND DATA Table of Contents Abstract ……………….. p. 2 Introduction ……………….. p. 4 Methodology ……………….. p. 7 Chapter 1: Literature Review ……………….. p. 8 Chapter 2: Korean Markets ……………….. p. ...
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