... return pattern, indicates that stocks with extreme positive daily returns underperform in the following month. Although well-documented globally, research in developing markets, particularly South Asia, is limited. This study examines the MAX effect in Sri Lanka and its prevalence among small stocks...

... should be included in analyses. The present study extends the literature of determinants of a dividend policy by investigating determinants of both propensity to pay dividends and its payout in a single study allowing to evaluate whether they contain the same set of determinants. Sri Lanka...

.../implications The findings are useful not only for corporate decision makers in establishing an appropriate dividend policy but also for shareholders in making investment decisions. Because the current study is limited to Sri Lanka, future researchers should study the same phenomenon in other countries using...

... a higher price also remains open. In the legislative hypothesis, it is assumed that issuers underprice the stock so as to safeguard themselves against any possible court action by subscribers to the issue. However, in Sri Lanka there has been no past history of such court action and it may not be a reason...