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A Study on Impact of Dividend Policy on Initial Public Offering Price Performance

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  • S. Meghna
  • N. Suresh
  • J. C. Usha

Abstract

This study examines the impact of dividend policy on the performance of initial public offerings in India. The period of study is from the year 2011-2014. Monthly returns of the IPOs issued in the considered period and the Indian Stock Market Index (Nifty 50) were considered for the long-run performance study. The methodological tools used are long-run performance statistics and the GARCH model. The Dummy variable was used to measure the effect of dividends on the IPOs. The study reveals that the dividend policy has no significant effect on the stock prices of IPO.

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  • S. Meghna & N. Suresh & J. C. Usha, 2022. "A Study on Impact of Dividend Policy on Initial Public Offering Price Performance," Papers 2207.07227, arXiv.org.
    • Handle: RePEc:arx:papers:2207.07227
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    References listed on IDEAS

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    1. Beat Reber & Caroline Fong, 2006. "Explaining mispricing of initial public offerings in Singapore," Applied Financial Economics, Taylor & Francis Journals, vol. 16(18), pages 1339-1353.
    2. Carter, Richard B & Manaster, Steven, 1990. "Initial Public Offerings and Underwriter Reputation," Journal of Finance, American Finance Association, vol. 45(4), pages 1045-1067, September.
    3. Agarwal, Sumit & Liu, Chunlin & Rhee, S. Ghon, 2008. "Investor demand for IPOs and aftermarket performance: Evidence from the Hong Kong stock market," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 18(2), pages 176-190, April.
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