The determinants of the dividend decision and payout policy for Egyptian listed corporations / Hisham Nour Eldin Ahmed Aly ; Supervised Osama Abdelkhalik Elansary

Thesis (Ph.D.) - Cairo University - Faculty of Commerce - Department of Business Administration

This thesis examines the patterns and determinants of listed corporate dividends policy and the payout channels in Egypt. In particular, it investigates the choice of the payout channel (i.e. dividends, repurchases, or both) and the impact of the reform program introduced in 1992 on corporate dividends policy. The main results of this study suggest that shareholders are more likely to receive a payout from firms that are more profitable, highly leveraged, mature, with less attractive investment opportunities, institutions owning more than 5% of the capital, and with high free float. These factors are considered relative to the importance of common characteristics in dividends paying. According to the study results, the dividends decision is not sticky, contrary to Lintner{u2019}s model (1956). The payout channel dividends (cash& stock) is the primarily payout channel. The joint effect of dividends and repurchase is the second choice, of the dividends payout channels. Privatized firms (formerly state - owned firms sold to private investors) outperform non - privatized firms in pay dividends. These results support the following hypotheses, The bird - in - the - hand theory, which also supports the Institutional Investor theory. The results also support the signaling theory. In addition, the results support the Agency costs of free cash flow theory

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