2021
DOI: 10.1108/jes-08-2020-0379
|View full text |Cite
|
Sign up to set email alerts
|

Share price informativeness and dividend smoothing behavior in GCC markets

Abstract: PurposeThis paper examines the dividend smoothing (DS) behaviour in the Gulf Cooperation Council (GCC) countries in emerging markets where the response to news and the economic environment are different from those of developed countries.Design/methodology/approachThe authors examine the effect of share price informativeness on DS in the GCC markets using 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 an… Show more

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
2
1

Citation Types

1
2
0

Year Published

2024
2024
2024
2024

Publication Types

Select...
3
1

Relationship

0
4

Authors

Journals

citations
Cited by 4 publications
(3 citation statements)
references
References 79 publications
1
2
0
Order By: Relevance
“…We also show that the pandemic does exert an observable influence on how the market reacts to different dividend changes, in the sense that amid hard times of crises, because of prevailing uncertainty and bearish sentiment, investors might underreactor even unreactto the good news of dividend increases. In conjunction with prior studies such as Al-Ajmi and Kim (2012) and Felimban et al (2018Felimban et al ( , 2022, our results also provide more evidence that contradicts market efficiency in the GCC markets. Such that we contribute to the existing literature in several ways.…”
Section: Introductionsupporting
confidence: 85%
See 2 more Smart Citations
“…We also show that the pandemic does exert an observable influence on how the market reacts to different dividend changes, in the sense that amid hard times of crises, because of prevailing uncertainty and bearish sentiment, investors might underreactor even unreactto the good news of dividend increases. In conjunction with prior studies such as Al-Ajmi and Kim (2012) and Felimban et al (2018Felimban et al ( , 2022, our results also provide more evidence that contradicts market efficiency in the GCC markets. Such that we contribute to the existing literature in several ways.…”
Section: Introductionsupporting
confidence: 85%
“…This study enriches the literature on COVID-19, the behavior of stock markets and corporates and the literature on financial crises and pandemics. In addition, via examining a sample of firms from GCC countries, this research, via conducting out-of-sample tests in a different context beyond the USA and developed markets, shed more light on the stock price behavior in the GCC markets primarily, the GCC markets, being characterized with weak market efficiency Dividend announcements and higher levels of uncertainty (Al-Ajmi and Kim, 2012;Felimban et al, 2022), represent an interesting case to explore how the stock markets have responded to changes in corporate dividend policies during the pandemic.…”
Section: Discussionmentioning
confidence: 99%
See 1 more Smart Citation