Dividend Policy, Trading Characteristics and Share Prices: Empirical Evidence From Egyptian Firms

Omran, Mohammed; Pointon, John

doi:10.1142/s0219024904002384

Cited by 42 publications

(43 citation statements)

References 11 publications

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“…Amendments to the basis of measurement and disclosure are expected to have an influence upon a company's financial performance (Andre et. al., 2008), the movement of share prices and the volume of shares traded (Omran and Painton, 2004).…”

Section: Introductionmentioning

confidence: 99%

The Advantages and the Challenges of Adopting IFRS into UAE Stock Market

Alsaqqa¹,

Sawan²

2013

IJBM

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This paper aims to assess the benefits gained and the challenges experienced by companies listed on the UAE stock market following the introduction of IFRS. Since the announcement by the European Union to adopt IFRS by listed companies, many countries have followed suit, hoping to gain competitive edge in attracting the Foreign Direct Investment to boost their economic growth. This study focuses on examining the advantages and challenges faced by companies listed on the UAE stock market listed companies as a result of adopting IFRS. The framework used in this analysis will be based on the identification and assessment of key drivers influencing companies listed on the UAE stock market. To what extent are these factors internal or external to the financial sector, but which have a direct bearing on the overall economic environment? The views and perceptions of the Chief Financial Officers' (CFOs) for Dubai and Abu Dhabi listed companies, financial analysts of the financial statements in the two listed companies and auditors will be analysed. Methodology:Questionnaires were used as the main method of data collection. Questionnaire were distributed in both Dubai and Abu Dhabi markets, The data obtained through the questionnaires have been imported into software for analysis, namely, the Statistical Package for the Social Sciences (SPSS). Findings:The results clearly show that the benefits of adopting IFRSs in UAE inevitably far outweigh the difficulties and costs. The findings also reveal that adoption of IFRSs in UAE stock markets has improved the overall standard of the quality of financial reporting, which help in attracting investors to invest in the UAE stock markets. However, many respondents were still apprehensive that effective and professional financial reporting decisions will be affected by the level of education of accounting users, the methods provided by some IFRSs, and the inadequate enforcement mechanisms.

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Section: Introductionmentioning

confidence: 99%

The Advantages and the Challenges of Adopting IFRS into UAE Stock Market

Alsaqqa¹,

Sawan²

2013

IJBM

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“…In accordance with empirical works (Agrawal & Jayaraman, 1994;Amidu & Abor, 2006, Chen & Steiner, 1999Dickens & al., 2003, Holder & al., 1998Omran & Pointon, 2004;Ooi, 2001;Wang & al., 1993;Zeng, 2003), this section attempts to identify determine the dividends' information content for the entire sample and for both subgroups.…”

Section: Variables Choice and Hypothesesmentioning

confidence: 99%

On the Determinants of Dividends’ Information Content

Said¹

2012

JMS

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This paper examines the determinants of dividends' information content. We put an emphasis on the role of ownership structure in explaining the impact of dividends on shareholders' wealth. To this end, our study examined a sample of 136 French firms during the year 2007 to empirically validate our model. The empirical results show a negative reaction of stock prices to dividend announcement. This finding is consistent with the hypothesis of deterioration of growth opportunities. However, we have concluded that firms' characteristics significantly affect dividends' information content.

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“…Some of those proxies are; Tobin's Q, market to book value, dividend yield and price earnings which are futuristic and long term in nature. These market-based proxies represent the expectations of the shareholders on the firm future performance (Omran & Pointon, 2004). The current study used market to book value and price earnings to gauge financial performance.…”

Section: Introductionmentioning

confidence: 99%

Financial Performance and Dividend Policy

Kimunduu

Mwangi

Kaijage

et al. 2017

ESJ

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Past studies on the relationship between dividend policy and firm performance continue being an unresolved predicament with few studies interrogating the causality relationship between financial performance and dividend policy. The purpose of this study was to establish the nature of relationship between financial performance and dividend policy of firms listed at the Nairobi securities exchange. The study applied positivism research philosophy and descriptive causal research design. The study was anchored on hypothetical view that the relationship between financial performance and dividend policy of firms listed at the Nairobi securities exchange is not significant which was tested against a sample size of 31 firms listed at the Nairobi securities exchange selected using purposive sampling technique. The research findings were as follows: There was a statistically significant direct association between return on equity and dividend policy. This implies that as firm profitability improve; a corresponding proportionate change in dividend payout ratio is initiated by management. In addition, it was established that there was a statistically significant positive linkage between operating cash flows and dividend policy which denotes that as cash flow levels from operating activities change, dividend payout ratio will change in the same direction leading to increased distribution of cash dividend to investors. Also, a statistically significant direct connection between price earnings and dividend policy was established. This relationship shows that increase in share market value positively prompts increased dividend payout ratio whereby the management follow a more acceptable dividend policy by the shareholders. However, market to book value depicted a weak insignificant inverse relationship with dividend policy and was dropped. In general it was concluded that the link between financial performance and dividend policy of firms listed at the

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Dividend Policy, Trading Characteristics and Share Prices: Empirical Evidence From Egyptian Firms

Cited by 42 publications

References 11 publications

The Advantages and the Challenges of Adopting IFRS into UAE Stock Market

The Advantages and the Challenges of Adopting IFRS into UAE Stock Market

On the Determinants of Dividends’ Information Content

Financial Performance and Dividend Policy

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