This paper investigates the information content (signalling) of dividend announcements by firms listed on the Karachi Stock Exchange (KSE) over the period 2005 to 2009. This sample period was selected in order to avoid contamination of the dividend signal with a capital gains tax effect since a...

This paper outlines the impact of dividend announcements on the share prices of firms listed on the Karachi Stock Exchange (KSE) in order to investigate the information content of the dividend announcements (Pettit, 1972). Moreover, the research provides some insights for policy makers as well...