TY - JOUR
T1 - Dividend policies of shariah-compliant and non-shariah-compliant firms
T2 - Evidence from the MENA region
AU - Farooq, Omar
AU - Tbeur, Oumkeltoum
PY - 2013
Y1 - 2013
N2 - Do shariah-compliant firms pay higher dividends than other firms? Using data from the MENA (Morocco, Egypt, Saudi Arabia, United Arab Emirates, Jordan, Kuwait, and Bahrain) region, this paper shows that shariah-compliant firms not only have higher payout ratios but also have higher likelihood to pay dividends than non-shariah-compliant firms during the period between 2005 and 2009. We argue that financial characteristics of shariah-compliant firms (i.e. low leverage, low account receivables, and low cash) are such that they pay higher dividends than their non-shariah-compliant counterparts. Furthermore, we also show that our results hold true in both legal regimes - the civil law countries and the common law countries.
AB - Do shariah-compliant firms pay higher dividends than other firms? Using data from the MENA (Morocco, Egypt, Saudi Arabia, United Arab Emirates, Jordan, Kuwait, and Bahrain) region, this paper shows that shariah-compliant firms not only have higher payout ratios but also have higher likelihood to pay dividends than non-shariah-compliant firms during the period between 2005 and 2009. We argue that financial characteristics of shariah-compliant firms (i.e. low leverage, low account receivables, and low cash) are such that they pay higher dividends than their non-shariah-compliant counterparts. Furthermore, we also show that our results hold true in both legal regimes - the civil law countries and the common law countries.
U2 - 10.1504/IJEBR.2013.055537
DO - 10.1504/IJEBR.2013.055537
M3 - Journal article
SN - 1756-9850
VL - 6
SP - 158
EP - 172
JO - International Journal of Economics and Business Research
JF - International Journal of Economics and Business Research
IS - 2
ER -