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School of Business | Department of Finance | Finance | 2013
Thesis number: 14478
Study of special dividend announcements: Finnish evidence
Author: Liira, Antti
Title: Study of special dividend announcements: Finnish evidence
Year: 2013  Language: eng
Department: Department of Finance
Academic subject: Finance
Index terms: rahoitus; financing; pörssiyhtiöt; exchange-listed companies; osakemarkkinat; stock markets; kurssivaihtelut; volatility; osingot; dividends
Pages: 63
Key terms: Special dividend; dividend signalling

This Master's Thesis objects to expand the existing literature related to signalling through special dividend announcements using evidence from Finnish special dividend announcements during 2000 - July 2011.


The paper examines the significance of average abnormal returns gained by the shareholders of a company announcing payment of special dividend using event study methodology. The data consists of 65 special dividend announcement during the period of January 2000 - July 2011 by companies listed on the Helsinki Stock Exchange (until year 2008) or NASDAQ OMX Helsinki (from 2008 onwards). Companies declaring special dividends were initially identified from the Kauppalehti online service that provides dates and amounts of dividend payments for Helsinki-listed companies. Also, Thomson One -database was used to cross-check the payments and dates.


In my study, I find that statistically significant abnormal returns occur during the special dividend announcements. In addition, I find that on average the cumulative average abnormal return during the event window of 21 days is close to the size of the special dividend.
Master's theses are stored at Learning Centre in Otaniemi.