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AuthorAbu-Abbas, Bassam M.
Available date2022-09-29T06:14:32Z
Publication Date2021
Publication NameRomanian Journal of Economic Forecasting
CitationAbu-Abbas, B. M. (2021). The Role of Dividends on Equity Valuation: Evidence from the GCC Countries. Romanian Journal of Economic Forecasting, 24(2), 162-180.
ISSN1582-6163
URIhttps://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85115396967&origin=inward
URIhttp://hdl.handle.net/10576/34617
AbstractThe paper extends the research on the ability of dividends to predict three equity valuation attributes: net earnings, cash flows from operations, and abnormal net earnings. Results from 264 companies that traded on the GCC Exchange during 2006–2016 provide the following insights. First, current dividends are value-relevant in predicting future net earnings, cash flows from operations, and abnormal net earnings. Second, current dividends are better predictors of these aspects over the short horizon than over the long horizon. Finally, in explaining the dividend policy, future net earnings have better incremental information than cash flows from operations and abnormal net earnings, and cash flows from operations have better incremental information than abnormal net earnings. These results have important implications for potential investors. To know the relationship between current dividends and future stock prices is considered important for Investors’ decisions in the GCC countries. This paper can be considered the first paper that studies the association between dividends and other three different equity valuation attributes as a comparative study of six emerging countries.
Languageen
PublisherInstitute for Economic Forecasting
SubjectAbnormal net earnings
Cash flows from operations
Dividends
GCC countries
Net earnings
TitleThe role of dividends on equity valuation: Evidence from the gcc countries
TypeArticle
Pagination162-180
Issue Number2
Volume Number24
dc.accessType Abstract Only


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