The propensity to pay dividends: empirical evidence from the MENA region

Panos Andrikopoulos, Osama El-Ansary, Walid Ibrahim Hassan

Research output: Contribution to journalArticle

Abstract

This paper investigates the relation between stock market sentiment and firms’ propensity to pay dividends in the MENA region for the period 2000- 2015. Using conventional determinants of cash distributions as control variables, our results show that the tendency to pay dividends is negatively related to the aggregate investors’ sentiment but positively related to the dividend premium. Unlike prior literature, we report no association between firms’ dividend policy and issues of stock market liquidity. Overall, we suggest that corporate payout policies in the case of the MENA region can best be explained by the dividend catering hypothesis.
Original languageEnglish
Pages (from-to)(In-Press)
JournalInternational Journal of Banking, Accounting and Finance
Volume(In-Press)
Publication statusAccepted/In press - 6 Jul 2018

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Empirical evidence
Propensity
Dividends
Middle East and North Africa
Investor sentiment
Dividend policy
Cash
Payout policy
Market sentiment
Control variable
Stock market liquidity
Premium
Stock market

Keywords

  • Dividends
  • Payout policy
  • Sentiment index
  • Market volatility

ASJC Scopus subject areas

  • Finance

Cite this

The propensity to pay dividends: empirical evidence from the MENA region. / Andrikopoulos, Panos; El-Ansary, Osama; Hassan, Walid Ibrahim.

In: International Journal of Banking, Accounting and Finance, Vol. (In-Press), 06.07.2018, p. (In-Press).

Research output: Contribution to journalArticle

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