Assignment
Step 1
Identify (interim or final) dividend change using "dividend history from the DatAnalysis Premium Database" for the company allocated to you for the assignment.
A dividend change is defined as the relative difference from the previous year's level.
Interim dividend change = interim dividend per share in year t minus interim dividend per share in year t-1.
Final dividend change = Final dividend per share in year t minus Final dividend per share in year t-1.
Step 2
Announcement date for the dividend change can be identified from "ASX announcements from the DatAnalysis Premium Database".
Announcement date for interim dividend change: use the announcement date of half yearly report
Announcement date for final dividend change: use the announcement date of preliminary final report
Select "ASX announcements"
Select "Search option - Click here to refine your search by ASX Announcement Type and/or text search" for Announcement Type: select periodic reports for Sub-Announcement Type: select preliminary - final statement for final dividend; half yearly report interim dividend change specify the date rage.
Step 3
(i) Calculate three day return earned by your firm for the period from the day before the announcement continuing through the day after the announcement date; and two day return earned by your firm for the period from the day of the announcement to the day after the announcement date
(ii) Calculate the market return for the corresponding periods in (i).
(iii) Calculate the excess: (i) - (ii)
Step 4
Check the results for any other two students in your tutorial class and report that result in your assignment.
Step 5
Discuss the relevant theory with the findings in Step 3 and Step 4.