아프리카ㆍ중동

This paper examines the determinants of dividend policy in GCC market based on sample firms in UAE market. An analysis was conducted to understand the dividend trends among different industry sectors in UAE market. The analysis of approximately 120 listed companies reveal that 80 per cent of the companies paid cash dividends during the three year period 2011-2013. The paper also examines the various theoretical attributes used in financial literature to understand the determinants of dividend policy. The partial least squares structural equations modeling (PLS-SEM) was used to test the alternate explanations of corporate dividend payout policy in the gulf market. The study finds support for residual theory and pecking order argument of dividends. Investment policy influences dividend policy. The results support the theory that firms with high growth rate in income requires higher capital expenditure and establish lower dividend payout on account of costly external financing. Liquidity is an important determinant of dividend decision. Stability of dividend payments is not a critical factor considered by financial markets in the region.