Dividend smoothing when firms distribute most of their earnings as dividends
Khamis Al-Yahyaee (),
T. M. Pham and
Terry Walter ()
Applied Financial Economics, 2011, vol. 21, issue 16, 1175-1183
Abstract:
Due to its distinctive institutional background, Oman offers a valuable opportunity to investigate the stability of the dividend policy. In Oman, (1) there are no taxes on dividends, (2) firms are highly levered mainly through bank loans, (3) there is a high concentration of stock ownership and (4) there is variability in cash dividend payments. These factors suggest a diminished role of dividend smoothing in Oman. Our results show that Omani financial firms have erratic dividend policies. These results are inconsistent with the predictions suggested by the relatively weak corporate governance, government ownership and dividend signalling.
Keywords: dividend smoothing; taxes; bank debt; government ownership (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:taf:apfiec:v:21:y:2011:i:16:p:1175-1183
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DOI: 10.1080/09603107.2011.566177
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