Abstract:
Purpose: In this paper we intend to study the trend of the stock prices after the announcement
and payment of dividends to the stockholders.
Design/methodology/approach: We have selected a company, Pakistan Oil and Gas
Development Company Limited, which is registered on the Karachi Stock Exchange 100 Index,
and have conducted a study of changing stock prices in relation to the corresponding dates of
dividend announcement and ex-dividend date.
Findings: Before the record date the stock prices remains high but afterwards they tends to
decrease as the dividends are form the profits (the assets) of the company.
