Market reactions to dividend announcements under different business cycles

Research output: Contribution to journalArticlepeer-review


In this paper, I examine the impact of business cycles on the market reaction to dividend announcements of large-cap firms in the Tel Aviv Stock Exchange. The findings show that the 2001-7 significant positive first-day dividend announcement reaction is derived from the significantly stronger market reaction during the crisis period of 2001-2. Hence, I conclude that the business cycle is a critical parameter in the investors' interpretation of dividend announcements. During busts, a dividend announcement is perceived as a strong and reliable signal about the state of the corporation, compared to times of normality.

Original languageEnglish
Pages (from-to)72-85
Number of pages14
JournalEmerging Markets Finance and Trade
Issue numberSUPPL. 5
StatePublished - 1 Nov 2011


  • business cycles
  • dividend announcement reaction
  • efficient market hypothesis

ASJC Scopus subject areas

  • Finance
  • Economics, Econometrics and Finance (all)


Dive into the research topics of 'Market reactions to dividend announcements under different business cycles'. Together they form a unique fingerprint.

Cite this