Table 7.

Firm performance around dividend announcement. Year 0 is announcement year. ROA is calculated for 3 years before and after the event. *p < 0.1. **p < 0.05. ***p < 0.01

	Cash dividend payment firms		Stock dividend payment firms
	ROA	p-value	ROA	p-value
Year −3	0.20	0.2123	0.19	0.2190
Year −2	0.18	0.1771	0.20*	0.0553
Year −1	0.15*	0.0772	0.17	0.3051
Year 0	0.24*	0.0866	0.17**	0.0210
Year +1	0.26**	0.0351	0.20	0.1677
Year +2	0.25**	0.0322	0.19	0.1015
Year +3	0.27*	0.0519	0.15	0.1909
Event window	Average ROA	p-value	Average ROA	p-value
Year (−3,-1)	0.18*	0.0562	0.19	0.1981
Year (+1,+3)	0.26**	0.0501	0.18	0.2017