Dividend Policy and Agency Theory on Emerging Stock Exchanges

Dividend policy is one of the most complex aspects in finance. Yet, researchers give substantial consideration to resolving the dividend puzzle, resulting in the emergence of a number of competing hypotheses, theories, and explanations. Researchers have principally focused on developed markets; however, additional insight into the dividend policy debate can be gained through an examination of developing countries, which is an area that is currently underrepresented in the literature. Dividend policy in emerging markets is often different in its nature, characteristics, and efficiency from that of developed markets. This book aims to identify the factors that influence the dividend policy of firms listed in the Gulf Cooperation Council (GCC) States (Saudi Arabia, Kuwait, United Arab Emeritus, Qatar, Bahrain and Oman) while focusing on agency theory. This study is the first to examine firms in GCC countries, where GCC states represent an important region in the world and provide a framework for the stability of oil and gas supplies to the world at large. These countries own approximately 45% of the world’s crude oil reserves and around 15% of its natural gas reserves.