This paper examines the security returns during ex-dividend period for firms listed on the Muscat Securities Market (MSM). We find stock dividends elicit a significant stock market response. In addition, the abnormal return seems not to be confined to the exday in Oman. In particular, the positive abnormal return extends for seven days after the stock dividend ex-day. We also find that larger firms in Oman prefer a higher trading range.

This paper examines the security returns during ex-dividend period for firms listed on the Muscat Securities Market (MSM). We find stock dividends elicit a significant stock market response. In addition, the abnormal return seems not to be confined to the exday in Oman. In particular, the positive ...