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 language | English |
|---|---|
| Pages (from-to) | 136-171 |
| Number of pages | 36 |
| Journal | International Journal of Banking, Accounting and Finance |
| Volume | 11 |
| Issue number | 1 |
| Early online date | 13 Jan 2020 |
| DOIs | |
| Publication status | Published - Jan 2020 |
Bibliographical note
Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders.Keywords
- Dividends
- Payout policy
- Sentiment index
- Market volatility
ASJC Scopus subject areas
- Finance
Fingerprint
Dive into the research topics of 'The propensity to pay dividends: empirical evidence from the MENA region'. Together they form a unique fingerprint.Profiles
-
Panagiotis Andrikopoulos
- Research Centre for Financial & Corporate Integrity - Centre Director
Person: Professional Services