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1 – 4 of 4Jamal Ali Al-Khasawneh, Heba Ali and Ahmed Hassanein
This study aims to investigate how stock markets responded to corporate dividend policy changes during the COVID-19 pandemic in the Gulf Cooperation Council (GCC) countries…
Abstract
Purpose
This study aims to investigate how stock markets responded to corporate dividend policy changes during the COVID-19 pandemic in the Gulf Cooperation Council (GCC) countries. Likewise, it explores how efficiently market prices incorporate the news by examining the speed of stock price adjustment to various dividend announcements.
Design/methodology/approach
The sample includes 741 dividend announcements from 2017 to 2021 made by 326 firms listed in the stock markets of the GCC countries. A series of regression analyses examine how dividend announcements influence the market reaction during the COVID-19 pandemic, controlling for other well-documented firm characteristics.
Findings
This study reveals an adverse stock price reaction to all the dividend announcements in most GCC markets. The findings also show strong asymmetric effects of COVID-19 on how the markets react to different dividend changes. Likewise, the authors show that investors tend to underreact to the good news of dividend increases amid hard times of crises due to prevailing uncertainty and bearish sentiment. Besides, regression results reveal that firms with dividend reductions during the pandemic experience less adverse market reactions than dividend-decreasing firms prepandemic.
Practical implications
For firms, the findings confirm the role that corporate dividend policy can play in conveying signals to investors, especially during hard times of crises and turbulences, thereby affecting their share price. For policymakers, the results substantially affect market efficiency and firm valuation in the GCC markets.
Originality/value
This study is not only one of the first few attempts to scrutinize how the pandemic has affected the market reaction to changes in corporate dividend policies but also, to the best of the authors’ knowledge, it is the first to examine how corporate dividend policy could affect stock markets during COVID-19 in the context of GCC markets.
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Ahmed Hassanein, Jamal Ali Al-Khasawneh and Hany Elzahar
Corporate managers spend on research and development (R&D) for reasons of growth and survival. However, they may be less willing to invest in R&D because of its long-term horizon…
Abstract
Purpose
Corporate managers spend on research and development (R&D) for reasons of growth and survival. However, they may be less willing to invest in R&D because of its long-term horizon, high failure rate and uncertain outcomes. This study aims to explore the extent to which managerial ownership influences R&D expenditure decisions.
Design/methodology/approach
Apart from the linear regression models, this study uses a semi-parametric quantile regression analysis for a sample of German non-financial firms throughout 2009–2018.
Findings
This study finds a nonmonotonic sensitivity of R&D spending to the level of managerial ownership over various quantiles of R&D distribution. That is, managerial ownership increases the expenditure on R&D at low R&D intensity firms. However, it decreases the expenditure on R&D at high R&D intensity firms. These results suggest the presence of a maximum level of R&D expenditure, after which owner-managers would be unwilling to spend on R&D.
Practical implications
The results confirm the importance of corporate ownership structure for firm R&D and innovation activities. It provides an implication for corporate policymakers to reform the corporate ownership structures to encourage corporate managers and owners to invest in R&D projects.
Originality/value
This study offers two distinct contributions study. First, it provides the first German shred of evidence on the nonlinear relationship between managerial ownership and R&D expenditure decisions by distinguishing between high and low R&D intensity firms. Second, unlike prior research, it uses a semi-parametric quantile regression analysis. This method is more efficient than least-squares estimators and produces robust estimators to heteroscedasticity of the residuals.
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Jamal Ali Al‐Khasawneh, Karima Bassedat, Bora Aktan and Priya Darshini Pun Thapa
The purpose of this paper is twofold. The first and the most important is to examine the efficiency of Islamic banks relative to conventional banks operating in North African Arab…
Abstract
Purpose
The purpose of this paper is twofold. The first and the most important is to examine the efficiency of Islamic banks relative to conventional banks operating in North African Arab countries, in terms of cost and revenue efficiency. The second objective is to assess more evidence regarding the banking system efficiency trend and dynamics in each single country, and to compare such trends among countries included in the study.
Design/methodology/approach
The non‐parametric data envelopment analysis (DEA) was used to estimate cost and revenue efficiency scores assuming variable returns to scale (VRS). The sample consists of nine Islamic banks and 11 conventional banks.
Findings
The results indicated that Islamic banks achieved higher average revenue efficiency scores over conventional banks in this region, while the growth rate of revenue efficiency score of Islamic bank was less than conventional banks. In terms of cost efficiency, the results varied from country to another. The results also showed that both groups of banks were close to each other, with an advantage to conventional banks, which suffer less cost efficiency loss over time compared to Islamic banks.
Research limitations/implications
The very limited data sources (banks' web sites) was was the main limitation faced during preparing for this research. Another limitation was the non‐regularity of annual reports.
Practical implications
Islamic banks are highly challenged in finding investment opportunities/avenues that comply with Islamic regulations, unlike conventional banks that can invest in fixed income securities. There is a serious need for some countries to deregulate their banking systems more, in order to enhance the compatibility and the efficiency of their banking, such as the case of Sudan.
Originality/value
Given the previously mentioned difficulties, decent data set were collected. The value of this paper is the use of nonparametric DEA to analyse cost and revenue efficiences in the countries of this region.
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Inas Mohammed Saadeh and Taghrid Saleh Suifan
This study aims to examine the effect of job stress on perceived organizational support (POS) and organizational commitment in hospitals in Amman, Jordan. It also investigated the…
Abstract
Purpose
This study aims to examine the effect of job stress on perceived organizational support (POS) and organizational commitment in hospitals in Amman, Jordan. It also investigated the mediating role of POS on the relationship between job stress and organizational commitment.
Design/methodology/approach
The study used a cross-sectional, quantitative survey design to collect data from 500 employees in six hospitals in Amman, Jordan. An Arabic version of a reliable and valid measurement instrument was used. A convenience sample was selected from employees in the targeted hospitals. Mediating effect was tested using the approach proposed by Baron and Kenny (1986). Validity and reliability tests were applied, and regression analyses were used to test the study hypotheses.
Findings
The results revealed a significant negative effect of job stress on POS and organizational commitment. The results also indicated full negative mediating effect of POS on the relationship between job stress and organizational commitment.
Practical implications
This research promotes hospitals to implement strategies that reduce employees’ job stress, increase levels of POS among employees working at hospitals, which, in turn, will enhance employees’ commitment to their hospitals.
Originality/value
This study is one of the first to investigate the proposed effects in Jordan in particular, and the Middle East in general. In addition, it contributes to the literature by examining the mediating effect of POS on the relationship between job stress and organizational commitment. Recommendations are provided to practitioners in hospitals based on the study results.
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