The effect of the financial crisis in the listed companies dividend policy on Euronext Lisbon

Abstract

In this thesis we intend to analyze the Portuguese market reactions to dividend changes, also considering the interaction between dividend and results changes. Additionally, we study the financial crisis effects on those same reactions.

To do so, we use a sample comprised by companies listed in the Euronext Lisbon, which announced dividend distribution between 2006 and 2013.

Our results didn’t allow us to find evidence for the dividend signaling hypothesis in the Portuguese market reactions. According to previous studies, we found that the market reacts in a stronger manner when dividends and results change in the same direction.

 Finally, regarding the crisis factor, we concluded that the market reacts more to changes in dividends and results when facing a period of economic stability.