Abstract
This research study provides a detailed analysis of the effect of dividend announcements on the share prices of software and computer services companies listed on the JSE between 2012 and 2022. The empirical analysis employed the event study methodology, which enabled the examination of abnormal stock returns at dividend announcement dates. Thirteen companies were sampled with 75 dividend announcement dates.
According to these research findings, the announcement of dividends significantly impacts share prices. The findings highlight the importance of considering dividend announcements as a critical element in understanding the behaviour of share prices and the decision-making process of investors.