Dividend policy and the downside risk in stock prices: evidence from the MENA region

IF 5.7 Q1 BUSINESS, FINANCE

Journal of Risk Finance Pub Date : 2021-09-28 DOI:10.1108/jrf-10-2020-0226

Omar Farooq, Harit Satt, F. Bendriouch, Diae Lamiri

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引用次数: 3

Abstract

PurposeThe aim of this paper is to document the impact of dividend policies on the downside risk in stock prices.Design/methodology/approachThe authors use the data for non-financial firms from the MENA region to test our arguments by estimating the pooled OLS regressions. The data cover the period between 2010 and 2018.FindingsThis paper shows that firms with higher dividend payouts have significantly lower downside risk in their stock prices than the other firms. The findings of this paper are robust across various proxies of dividend policy and across various sub-samples. This paper contends that lower downside risk associated with the stock prices of firms paying high dividends is due to the fact that these firms have lower agency problems. Lower agency problems reduce the downside risk in stock prices.Originality/valueTo the best of the authors’ knowledge, most of the prior research (covering the MENA region) overlooks the impact of dividend policy on the downside risk in stock prices. This paper fills this gap by documenting the relationship between the two by using the data for firms from the MENA region.

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股息政策与股价下跌风险：来自中东和北非地区的证据

本文的目的是记录股利政策对股票价格下行风险的影响。设计/方法/方法作者使用来自中东和北非地区的非金融公司的数据，通过估计汇总OLS回归来检验我们的论点。该数据涵盖2010年至2018年期间。研究结果表明，高派息公司的股价下行风险明显低于其他公司。本文的研究结果在不同的股息政策代理和不同的子样本中都是稳健的。本文认为，高派息企业股价的下行风险较低是因为这些企业的代理问题较低。较低的代理问题降低了股票价格的下行风险。原创性/价值据笔者所知，大多数先前的研究(涵盖中东和北非地区)忽视了股息政策对股价下行风险的影响。本文通过使用来自中东和北非地区的公司数据来记录两者之间的关系，从而填补了这一空白。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Risk Finance BUSINESS, FINANCE-

CiteScore

6.20

自引率

6.70%

发文量

期刊介绍： The Journal of Risk Finance provides a rigorous forum for the publication of high quality peer-reviewed theoretical and empirical research articles, by both academic and industry experts, related to financial risks and risk management. Articles, including review articles, empirical and conceptual, which display thoughtful, accurate research and be rigorous in all regards, are most welcome on the following topics: -Securitization; derivatives and structured financial products -Financial risk management -Regulation of risk management -Risk and corporate governance -Liability management -Systemic risk -Cryptocurrency and risk management -Credit arbitrage methods -Corporate social responsibility and risk management -Enterprise risk management -FinTech and risk -Insurtech -Regtech -Blockchain and risk -Climate change and risk