Dividend Performance in the United Arab Emirates Banking Sector

International Journal of Finance and Banking Studies 5(6) 1-8, 2016

8 Pages Posted: 21 Jun 2019

Date Written: December 17, 2016

Abstract

The purpose of this study was to analyze the dividend performance of eight UAE based banks between the years 2001 and 2005. The analysis was undertaken by examining three sets of financial ratios that are routinely used to measure bank dividend performance. The main ratios that were employed put a particular focus on the banks’ ability to pay dividends in relation to market value of its share, earnings and ability to cover the payments. Descriptive statistical analysis was used to rank the performance, measuring the dispersion and the stability-variability of the indicators. Conclusions were then drawn from the computation of the descriptive analysis of ratios that allowed the author to make an effective comparison of said banks. This type of analysis was used to summarize the performance of each bank based on three criteria, mean, standard deviation and coefficient of variation of each banks performance. The findings showed that eight banks performed reasonably well during the period studied, but have different strategies in paying their dividends across the years under study. The analysis reveals that these banks have been affected by both internal and external factors.

Keywords: Banking; Financial Analysis; Dividend Policy; United Arab Emirates

JEL Classification: G21; G32; G35

Suggested Citation

Ibrahim, Mukdad Mohammad, Dividend Performance in the United Arab Emirates Banking Sector (December 17, 2016). International Journal of Finance and Banking Studies 5(6) 1-8, 2016, Available at SSRN: https://ssrn.com/abstract=3405542 or http://dx.doi.org/10.2139/ssrn.3405542

Mukdad Mohammad Ibrahim (Contact Author)

American University of Ras Al Khaimah ( email )

United Arab Emirates

HOME PAGE: http://www.aurak.ac.ae

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