A Study on the Effect of Dividend Announcement Dates on the Stock Prices of Various IT Companies

A research has examined the effects that dividend declarations have on stocks by studying three essential profit distribution dates including declaration date, ex-dividend date and record date. Through dividends companies distribute profits to shareholders and this payment method regulates stock market activity and investor actions. The presented research bases its findings on the analysis of financial data from three IT organizations namely Tata Consultancy Services, Mphasis and Oracle Financial Services Software Limited. Stock price changes demonstrate specific behavior patterns during the period when dividends are announced. Strategic dividend policy assessment remains vital for business stability and shareholdercontentment as shown through this research-based findings regarding stock market reactions to dividend announcements.