Windy Jufri Febrita, M. Shabri Abd. Majid, Maulidar Agustina, Zulkifli Zulkifli, Suriani Suriani, Muhammad Haris Riyaldi
This research is an event study, aiming at observing the stock markets' reaction to dividend announcements using the abnormal return indicator. This study covers a four-year period, from 2019 to 2022. The event window is set as three-day before and three-day after the dividend announcement. A number of 50 companies were selected as the sample of the study consists of each 25 Islamic stocks and 25 conventional stocks. The research employs a documentation method, primarily sourcing data from the official website of the Indonesia Stock Exchange, by collecting daily closing stock prices during the observation period. The study's findings revealed the presence of abnormal return differences both before and after the dividend announcement, for both Shariah-compliant and conventional company stocks. The findings further signify that the different stock market reactions as indicated by the differences in the abnormal returns to the dividend announcements. © 2023 IEEE.
Universitas Syiah Kuala (USK), Faculty of Economics and Business, Department of Economics, Banda Aceh, Indonesia
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