On the Impact of Dividend Payments on Stock Prices - an Empirical Analysis of the German Stock Market

Abstract This paper examines the relation between dividend payments and stock prices of all firms in German prime standard DAX 30 time period from 2012 to 2019. The irrelevance theory introduced by Miller Modigliani states that must not have an impact on a perfect market. In contrast, signaling puzzle indicate are likely profound price. According our findings ex-dividend decrease was significantly smaller than payment. Nevertheless, results support payment share Firstly, existence markdown is proof cause price losses. Secondly, study explains particular high result over examined period. Thirdly, analysis demonstrates positive correlation development according theory. Considering above- mentioned results, we can conclude company highly affected decision making regarding policy.