Security Returns During Ex-Dividend Period

AbstractThis paper examines the security returns during ex-dividend period for firms listed on the Muscat Securities Market (MSM). We find stock dividends elicit a significant stock market response. In addition, the abnormal return seems not to be confined to the ex-day in Oman. In particular, the positive abnormal return extends for seven days after the stock dividend ex-day. We also find that larger firms in Oman prefer a higher trading range

Capital structure and stock returns: Evidence from an emerging market with unique financing arrangements

We investigate capital structure dynamics in a unique financing environment where (1) we avoid the complex tax environments faced by previous studies and where (2) firms rely primarily on bank loans rather than the public debt market.Consistent with recent empirical evidence, we find that stock returns are a first-order determinant of capital structure. Firms show some tendency to rebalance towards their target capital structure. However, the impact of stock returns dominates the effects of rebalancing. We also find that firm\u27s stock returns induce some corporate issuing activity, and managers use issuing activity to counteract some of the mechanistic effects of stock returns

THE EFFECTS OF WORK STRESS ON JOB SATISFACTION OF HEALTHCARE WORKERS IN A PUBLIC SECTOR HOSPITAL IN ALDAKHLIYA, OMAN

The role of healthcare workers is central to the modern healthcare system and was further highlighted during the COVID-19 pandemic situation. However, the healthcare workers did face a lot of work pressure during the pandemic which also had some negative consequences. In the present study, we investigated the effects of work stress and its five dimensions including the availability of resources, work environment, reward and incentive, functional relationship, and fear of catching COVID-19 on employee job satisfaction in the context of the public healthcare system in Oman. The sample is selected from a selected healthcare unit and data is collected using the survey-based method. The findings show that there are significant effects of two dimensions including functional relationships and work environments on healthcare job satisfaction. Based on the findings, it can be concluded that healthcare workers facing a lot of stress and this issue need greater managerial attention. Keywords: Work Stress, Job Satisfaction, Healthcare Workers, COVID-19 Pandemic

The information content of cash dividend announcements in a unique environment

Due to its distinctive institutional background, Oman offers a valuable opportunity to examine stock price reactions to dividend announcements. In Oman, (1) there are no taxes on dividends and capital gains, (2) there is a high concentration of share ownership, (3) there is low corporate transparency, and (4) firms frequently change their dividends. Our results show that announcements of dividend increases are associated with increased stock prices, while announcements of dividend decreases cause decreases in stock prices. Firms that do not change their dividends experience insignificant negative returns. These results contradict tax-based signaling models, which argue that higher taxes on dividends relative to capital gains are a necessary condition for dividends to be informative

Dividend stability in a unique environment

Purpose - This paper aims to examine the stability of dividend policy using a unique data set. Design/methodology/approach - The paper is based on the Lintner model that is used to test the dividend smoothing behavior. The specific econometric method used for panel data is Tobit regression. Findings - The evidence shows that Omani firms adopt a policy of smoothing dividends. This stability of dividends does not support the predictions suggested by the high bank leverage, absence of taxes, and the variability of dividend payments in Oman. Research limitations/implications - This study highlights the need for further research in order to examine whether these results have any effect on dividend initiations and omissions in Oman. Practical implications - The findings of this study show that there are differences in dividend policies between the Omani companies and those in developed markets. Potential investors in the Omani market should be aware about these differences in making their investment decisions. Originality/value - This paper examines stability of dividend policy in a unique environment where firms distribute almost 100 percent of their profits in dividends, firms are highly levered mainly through bank loans, there are no taxes on dividends and capital gains, and there is variability in cash dividend payments. These factors suggest a diminished role of dividend stability in Oman. It is an empirical issue to examine whether this is indeed true. The authors are not aware of any other study on dividend stability using data with these unique factors

Dividend stability in a unique environment

Purpose – This paper aims to examine the stability of dividend policy using a unique data set. Design/methodology/approach – The paper is based on the Lintner model that is used to test the dividend smoothing behavior. The specific econometric method used for panel data is Tobit regression. Findings – The evidence shows that Omani firms adopt a policy of smoothing dividends. This stability of dividends does not support the predictions suggested by the high bank leverage, absence of taxes, and the variability of dividend payments in Oman. Research limitations/implications – This study highlights the need for further research in order to examine whether these results have any effect on dividend initiations and omissions in Oman. Practical implications – The findings of this study show that there are differences in dividend policies between the Omani companies and those in developed markets. Potential investors in the Omani market should be aware about these differences in making their investment decisions. Originality/value – This paper examines stability of dividend policy in a unique environment where firms distribute almost 100 percent of their profits in dividends, firms are highly levered mainly through bank loans, there are no taxes on dividends and capital gains, and there is variability in cash dividend payments. These factors suggest a diminished role of dividend stability in Oman. It is an empirical issue to examine whether this is indeed true. The authors are not aware of any other study on dividend stability using data with these unique factors.Dividends, Financial economics, Oman, Taxes

The information content of cash dividend announcements in a unique environment

Due to its distinctive institutional background, Oman offers a valuable opportunity to examine stock price reactions to dividend announcements. In Oman, (1) there are no taxes on dividends and capital gains, (2) there is a high concentration of share ownership, (3) there is low corporate transparency, and (4) firms frequently change their dividends. Our results show that announcements of dividend increases are associated with increased stock prices, while announcements of dividend decreases cause decreases in stock prices. Firms that do not change their dividends experience insignificant negative returns. These results contradict tax-based signaling models, which argue that higher taxes on dividends relative to capital gains are a necessary condition for dividends to be informative.Dividends Tax effects Information content Price reaction