Cost of debt and dividend policy : evidence from MENA region
Dissertant
Thesis advisor
University
Al Akhawayn University
Faculty
The School of Business Administration
University Country
Morocco
Degree
Master
Degree Date
2009
English Abstract
Prior literature documents a positive relationship between dividend policy and corporate governance, and negative relationship between the quality of corporate governance and cost of debt.
Therefore, we hypothesize that there is a negative relationship between cost of debt and dividend policy.
Using a sample of firms from the MENA region (Middle East and North Africa), during the period between 2004 and 2008, we document a negative relationship between cost of debt and dividend policy.
Our results remain robust even after controlling for various firm-specific characteristics.
The main reason for this negative relationship is that dividend policy act as a substitute for corporate governance mechanisms in emerging markets.
Prior literature argues that creditors take into consideration the quality of corporate governance while assessing the riskiness of the firm.
High dividend payout ratio reflects proper corporate governance, which would result in a lower required rate of return by creditors, a lower cost of debt for the firm
Main Subjects
No. of Pages
28
Table of Contents
Table of contents.
Abstract.
[Chapter One] : Introduction.
Chapter Two] : Motivation and background].
Chapter Three] : Cost of debt].
Chapter Four] : Data].
Chapter Five] : Methodology].
Chapter Six] : Robustness of results].
Chapter Seven] : Conclusion].
References.
American Psychological Association (APA)
Jabburi, Imad. (2009). Cost of debt and dividend policy : evidence from MENA region. (Master's theses Theses and Dissertations Master). Al Akhawayn University, Morocco
https://search.emarefa.net/detail/BIM-628312
Modern Language Association (MLA)
Jabburi, Imad. Cost of debt and dividend policy : evidence from MENA region. (Master's theses Theses and Dissertations Master). Al Akhawayn University. (2009).
https://search.emarefa.net/detail/BIM-628312
American Medical Association (AMA)
Jabburi, Imad. (2009). Cost of debt and dividend policy : evidence from MENA region. (Master's theses Theses and Dissertations Master). Al Akhawayn University, Morocco
https://search.emarefa.net/detail/BIM-628312
Language
English
Data Type
Arab Theses
Record ID
BIM-628312