Event Analysis of Dividend Declaration on Stock Prices of Oil, Gas and Power Industry

Abstract

There is no research conducted for event analysis of oil, gas and power industry company stocks. These industries have great potential to grow in the future so it is important to conduct event analysis for the stocks of these industries so that the findings of this study may have implications for investors, policymakers, and corporate managers in the Oil, Gas, Power and Energy Industry. A common study technique in finance and economics is event analysis of stocks, which is used to examine how business events, such as dividend announcements, mergers and acquisitions, and earnings surprises, affect stock prices. The main goal of event analysis is to ascertain whether the disclosure of a certain corporate event has a substantial effect on a company's stock price and to quantify the strength and direction of this influence. Many corporate finance-related ideas, including the efficient market hypothesis, agency theory, and signaling theory, have been empirically tested using event analysis.