Rise and fall in various forms of dividends declarations: An event study on the Philippine Stock Exchange

Date of Publication


Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Management of Financial Institutions


Ramon V. Del Rosario College of Business


Financial Management

Thesis Adviser

Tommy Tiu

Defense Panel Chair

Mar Andriel Umali

Junette Perez

Defense Panel Member

Patricia Benito
Marycris Albao
Liberty Patiu


Declarations of dividends are seen in different perspectives with various purposes such as a strategy, an income, an incentive, or a signal. It aims to provide an insight for investors as to the purposes of dividends and when to take advantage of the changes in price. This study not only examines the type of efficiency of the Philippine stock market but also the effects of dividends through magnifying into the dividend announcements of the companies using MacKinlay event study, specifically using cumulative average abnormal return that calculates overall return throughout the entire event window and market adjusted return model that views the market as a whole. The study uses data from 2006-2016 of all publicly listed companies in the Philippine Stock Exchange with all common shares and observing on changes cash, stock, and property dividends, while excluding all declarations with confounding events. Thereafter, the study finds out that in PSE, declarations are significant in general, while cash dividends are most significant with both increase and decrease. Therefore, the active investors could take advantage of the short-term fluctuations of prices for capital gains, while long term investors are recommended to invest in those with stable growth, having if declaring stock and property dividend optional. Due to the limited numbers of filtered events for stock and property, the researchers recommend study on larger exchanges with numerous numbers of events.

Abstract Format






Accession Number


Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

iii, 174, 4 leaves : illustrations (some color) ; 28 cm. + 1 computer disc ; 4 3/4 in.


Dividends--Philippines; Stock exchanges--Philippines

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