Dividend smoothing when firms distribute most of their earnings as dividends

K. H. Al-Yahyaee, T. M. Pham, T. S. Walter

Research output: Contribution to journalArticlepeer-review

6 Citations (Scopus)


Due to its distinctive institutional background, Oman offers a valuable opportunity to investigate the stability of the dividend policy. In Oman, (1) there are no taxes on dividends, (2) firms are highly levered mainly through bank loans, (3) there is a high concentration of stock ownership and (4) there is variability in cash dividend payments. These factors suggest a diminished role of dividend smoothing in Oman. Our results show that Omani financial firms have erratic dividend policies. These results are inconsistent with the predictions suggested by the relatively weak corporate governance, government ownership and dividend signalling.

Original languageEnglish
Pages (from-to)1175-1183
Number of pages9
JournalApplied Financial Economics
Issue number16
Publication statusPublished - Aug 2011


  • Bank debt
  • Dividend smoothing
  • Government ownership
  • Taxes

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


Dive into the research topics of 'Dividend smoothing when firms distribute most of their earnings as dividends'. Together they form a unique fingerprint.

Cite this