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Globalisation, Technology and Sustainable Development Book Series
BUSINESS EXCELLENCE AND COMPETITIVENESS IN THE MIDDLE EAST AND NORTH AFRICA
Allam Ahmed |
(from Section V: Finance and Banking)
| Full Citation and Abstract
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Title: |
Dividend signaling by financial firms |
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Author(s): |
Abdelaziz Chazi |
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Address: |
School of Business and Management, American University of Sharjah, P.O. Box 26666, Sharjah, UAE
achazi @ aus.edu |
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Reference: |
BUSINESS EXCELLENCE AND COMPETITIVENESS IN THE MIDDLE EAST AND NORTH AFRICA pp. 236 - 241 |
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Abstract/
Summary |
Investors consider commercial banks as unique types of financial institutions. Hence, they rely more in their transactions, on the banks dividend policy-based information signalling than they do in the case of non-financial firms. The literature shows that non-banks dividend cuts produce abnormal returns between -1.5% and -3% during the two days event period. This study shows that the negative abnormal returns following the announcement of banks dividend cuts are larger than they are in the case of non-financial firms. Using the event study methodology, we find that this cumulative average abnormal return varies around -6%. |
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