أثر سياسة توزيع الأرباح و هيكل رأس المال على القيمة السوقية للمصارف المدرجة في السوق المالية السعودية

Abstract EN

Purpose: The aim of this study is to obtain Empirical evidence from Saudi business environment; for the impact of the dividend policy and the capital structure on the market value of banks listed on Saudi stock exchange Design and Methodology: The study adopted the content analysis approach to examine the annual reports of a sample of (11) banks listed on the Saudi stock exchange during the period (2016: 2019), with a total of (44) observations.

To test the hypotheses of the study that reflect the dividend policy and the capital structure on the market value, the study used the simple and multiple regression analysis method.

Results and Recommendations: The results of the study indicate that there is a significant impact of dividend policy on the market value.

However, the study finds that there is in significant impact of the capital structure on the market value.

However, it shows that there is a significant impact of both dividend policy and capital structure on the market value of Saudi banks.

According to the results, the study recommends the necessity of determining the appropriate mix of financial sources (external and internal), as the optimal use of this mix may lead to a reduction in the cost of capital, which maximizes the enterprise value and opens its way for more investment opportunities, and thus increase its profitability.

In addition, the financial markets and firmans management should pay attention to the dividend policy, due to its great effect on retained earnings, which represent a form of self-financing, as well as its effect on the market value of enterprises.

Practical Implications: The results of this study may be of interest to business enterprises management in making decisions that would maximize the market value of the enterprises.

In addition, the benefit that shareholders and bearer shares get from those enterprises by forecasting stock prices based on data of dividends and the changes in the capital structure of the enterprise.The results of the study may also provide suggestions and recommendations that help decision-makers in Saudi and Arab business enterprises to take the right measures, financial, accounting and financing decisions in a way that serves present and expected investors.

Originality and Value: This study contributes to the accounting and finance literature by attempting to reduce the argument regarding the impact of the dividend policy and the capital structure on the market value of business enterprises, which may contribute to explain the variance of shares performance in Saudi banks.

It also provides additional evidence to explain that relationship in the Saudi business environment.