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Determining dividend payouts of the MENA banking industry: a probit approach

Author

Listed:
  • Rola Elkabbani
  • Christian Richter
  • Mona ElBannan
Abstract
The purpose of this cross-country study is to highlight the main determinants of the payout policy in the banking sector on a sample of MENA countries during the period of 2011-2016. Dividends act as a signaling tool to convey the bank’s overall stability and positive growth prospects. Large and profitable banks are more prone to distribute dividends. However, managers seek profitability and dividends distribution at the expense of high liquidity risk. Competition is the most influential determinant of dividend payout in the MENA region, in which dividends act as a control mechanism to reduce the agency costs between shareholders and managers.

Suggested Citation

  • Rola Elkabbani & Christian Richter & Mona ElBannan, 2020. "Determining dividend payouts of the MENA banking industry: a probit approach," Economics and Business Letters, Oviedo University Press, vol. 9(3), pages 221-229.
    • Handle: RePEc:ove:journl:aid:14534
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    File URL: https://reunido.uniovi.es/index.php/EBL/article/view/14534
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    References listed on IDEAS

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