Share price informativeness and dividend smoothing behavior in GCC markets
Article
Felimban, R., Badreddine, S. and Floros, C. 2022. Share price informativeness and dividend smoothing behavior in GCC markets. Journal of Economic Studies. 49 (6), pp. 978-1001. https://doi.org/10.1108/JES-08-2020-0379
Type | Article |
---|---|
Title | Share price informativeness and dividend smoothing behavior in GCC markets |
Authors | Felimban, R., Badreddine, S. and Floros, C. |
Abstract | This paper examines the dividend smoothing behaviour in Gulf Cooperation Council (GCC) countries, in emerging markets where the response to news and the economic environment are different from those of developed countries. We examine the effect of share price informativeness on dividend smoothing in the (GCC) markets, using an unbalanced panel data for a sample of 628 GCC-listed firms during 1994-2016. For the regression analysis, the hypotheses are tested using panel regressions and GMM estimation. The empirical results can be summarised in the following manner: First, the Lintner model shows that the dividend smoothing degree in GCC firms is comparable to that of a developed market. Second, and importantly, the results reveal that the dividend smoothing in GCC firms is sensitive to private information of share prices. Finally, the findings indicate that information asymmetry and agency-based models affect the tendency to smooth dividends in the GCC markets. |
Keywords | Dividend smoothing; Share price informativeness; Information asymmetry; GCC |
Sustainable Development Goals | 9 Industry, innovation and infrastructure |
Middlesex University Theme | Sustainability |
Publisher | Emerald |
Journal | Journal of Economic Studies |
ISSN | 0144-3585 |
Publication dates | |
Online | 28 Jul 2021 |
24 Aug 2022 | |
Publication process dates | |
Deposited | 18 Apr 2023 |
Submitted | 02 Aug 2020 |
Accepted | 29 Jun 2021 |
Output status | Published |
Accepted author manuscript | License |
Copyright Statement | Copyright © 2021, Emerald Publishing Limited |
Digital Object Identifier (DOI) | https://doi.org/10.1108/JES-08-2020-0379 |
Web of Science identifier | WOS:000678736200001 |
Language | English |
https://repository.mdx.ac.uk/item/8q4vx
Download files
60
total views35
total downloads1
views this month0
downloads this month