The impact of dividend announcement on stock prices in Muscat securities market, Muscat

Abstract

The existence of capital market enables company to obtain an alternative source of fund. On the other hands, it gives flexibility for investor to choose investment based on their preference. The company and investor who are involved in the capital market, understanding about capital market condition becomes matter in order to understand how the market is actually works. Shares of companies traded in the financial markets and where is the market value of the shares is determined by supply and demand, and so by selling and buying in the financial market. The investors are evaluated the stocks of companies based on many financial factors, including: Earnings per share and dividend policy. In addition to many other factors, as there are non-financial factors, such as the news circulating in the market and the administration’s reputation and the nature of the activity of the company. It is also considered the financial markets indicators of important measures that indicate the size of the economy and its kind and the availability of liquidity in the market, transparency and efficiency, so is the market value of the shares of the most important financial market indicators.