Share price informativeness and dividend smoothing behavior in GCC markets

Felimban, Razaz, Badreddine, Sina ORCID logoORCID: and Floros, Christos (2022) Share price informativeness and dividend smoothing behavior in GCC markets. Journal of Economic Studies, 49 (6) , 3. pp. 978-1001. ISSN 0144-3585 [Article] (doi:10.1108/JES-08-2020-0379)

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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.

Item Type: Article
Sustainable Development Goals:
Keywords (uncontrolled): Dividend smoothing, share price informativeness, information asymmetry, GCC
Research Areas: A. > Business School > Accounting and Finance
Item ID: 37585
Notes on copyright: Copyright © 2021, Emerald Publishing Limited
'This author accepted manuscript is deposited under a Creative Commons Attribution Non-commercial 4.0 International (CC BY-NC) licence. This means that anyone may distribute, adapt, and build upon the work for non-commercial purposes, subject to full attribution. If you wish to use this manuscript for commercial purposes, please contact
Depositing User: Sina Badreddine
Date Deposited: 18 Apr 2023 13:31
Last Modified: 03 Jun 2023 04:40

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