Article2010

Corporate dividends decisions: evidence from Saudi Arabia

111 citations0/0 files storedThe Journal of Risk Finance

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Corporate Finance and Governance Financial Markets and Investment Strategies Financial Analysis and Corporate Governance

Abstract

Purpose The paper aims to test the stability of dividend policy, test the effect of cash flow on the company's dividend policy, identify the factors that determine a firm's cash dividend payments, and examine the characteristics of dividend‐paying and non‐paying firms. Design/methodology/approach The hypotheses are tested using unbalance panel data for a sample of 54 Saudi‐listed firms during 1990‐2006. Findings Saudi firms pay out a lower proportion of their cash flows compared to the proportion of dividends of reported earnings. Firms have more flexible dividend policies since they are willing to cut or skip dividends when profit declines and pay no dividends when losses are reported. Lagged dividend payments, profitability, cash flows, and life cycle are determinants of dividend payments. Agency costs are not a critical driver of dividend policy of Saudi firms. Zakat is found to play a role in explaining firm's dividend decisions. Originality/value This paper is the first to study the determinants of dividend policy in a country where companies are required to pay Islamic zakat.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 111 citations exist upstream.

References

1997A Survey of Corporate Governance 2021Econometric Analysis of Panel Data 1961Dividend Policy, Growth, and the Valuation of Shares 1956DISTRIBUTION OF INCOMES OF CORPORATIONS AMONG DIVIDENDS, RETAINED EARNINGS AND TAXES 1998Agency Problems and Dividend Policies Around the World 1984Two Agency-Cost Explanations of Dividends 1979Imperfect Information, Dividend Policy, and "The Bird in the Hand" Fallacy 2001Capital Structures in Developing Countries

Cited by

2019Factors affecting dividend policy in manufacturing companies in Indonesia Stock Exchange 2018Determinants of dividend payout of construction companies: a panel data analysis 2018Dividend policy determinants of Sri Lankan firms: a triangulation approach 2016Determinants of Dividend Policy of Indian Companies 2017Dividend payout policy of Islamic vs conventional banks: case of Saudi Arabia 2021How does ownership structure affect the financing and dividend decisions of firm?

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.