The determinants of capital structure and dividend policy : empirical evidence from the Kingdom of Saudi Arabia Market
Joint Authors
al-Halabi, Sharif
al-zunaydi, Muhammad
al-Ghazzali, Mahmud
Source
The International Journal of Business Ethics and Governance
Issue
Vol. 1, Issue 2 (31 May. 2018), pp.45-69, 25 p.
Publisher
EuroMid Academy of Business and Technology
Publication Date
2018-05-31
Country of Publication
Turkey
No. of Pages
25
Main Subjects
Abstract EN
-This paper investigates the main factors determining the dividend payout policy and the capital structure decision in the Kingdom of Saudi Arabia (KSA).
The sample includes 91 non-financial firms listed on the KSA stock market (Tadawal Stock Exchange) for the period between 2012 and 2016.
Two models are used mainly the Ordinary Least Square (OLS) for the capital structure decision and Logistic Regression (LR) for the dividend policy decision.
OLS results show that the capital structure is positively affected by the firm size, but negatively affected by liquidity, tangible assets, and lagged dividends.
However, other variables such as profitability, the current dividend payout ratio, growth opportunities, and life cycle are found to have no impact on the capital structure decision.
Furthermore, LR results show that the significant determinants of dividend payout decision are profitability, growth opportunity, and lagged dividends.
These results show that the capital structure and the dividend payout decisions are determined differently.
American Psychological Association (APA)
al-Halabi, Sharif& al-zunaydi, Muhammad& al-Ghazzali, Mahmud. 2018. The determinants of capital structure and dividend policy : empirical evidence from the Kingdom of Saudi Arabia Market. The International Journal of Business Ethics and Governance،Vol. 1, no. 2, pp.45-69.
https://search.emarefa.net/detail/BIM-1259591
Modern Language Association (MLA)
al-Halabi, Sharif…[et al.]. The determinants of capital structure and dividend policy : empirical evidence from the Kingdom of Saudi Arabia Market. The International Journal of Business Ethics and Governance Vol. 1, no. 2 (2018), pp.45-69.
https://search.emarefa.net/detail/BIM-1259591
American Medical Association (AMA)
al-Halabi, Sharif& al-zunaydi, Muhammad& al-Ghazzali, Mahmud. The determinants of capital structure and dividend policy : empirical evidence from the Kingdom of Saudi Arabia Market. The International Journal of Business Ethics and Governance. 2018. Vol. 1, no. 2, pp.45-69.
https://search.emarefa.net/detail/BIM-1259591
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 64-69
Record ID
BIM-1259591