Stock Price Reaction to Dividend Announcement in Croatia

Abstract

The aim of this research is to analyze the connection between dividend announcement and stock price on Croatian capital market using event study methodology. Research period was the period from the year 2007 to the year 2009. Results have confirmed that dividend change has statistically significant value for investors. Dividend increase and dividend decrease resulted in statistically significant stock price change in the same direction, while dividend retention resulted with no statistically significant stock price change.