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dc.contributor.advisorMazouz, Khelifa
dc.contributor.advisorSharma, Abhijit
dc.contributor.authorEbrahim, Rabab H.A.H.*
dc.date.accessioned2018-05-29T12:43:04Z
dc.date.available2018-05-29T12:43:04Z
dc.date.issued2017
dc.identifier.urihttp://hdl.handle.net/10454/16047
dc.description.abstractDividend policy, its determinants, and its impact on firm value are of significant academic interest, and many theories and explanations have been posited on the subject over the years, but there has not been a universal agreement. This thesis examines the links between dividend policy, various aspects of stock liquidity and price informativeness. We study a sample of UK firms over the period from 1996-2013. We show that, on average, stocks of dividend payers have significantly lower bid–ask spread and a lower illiquidity ratio than their counterparts of non-dividend payers. We also find that stocks of high-dividend payers are more liquid than those of firms that pay low or no dividends. These findings are consistent with the predictions of asymmetric information that posit that paying dividends reveals inside information to the market and hence decreases the level of asymmetric information, leading to higher stock liquidity. In the subsequent analysis, we suggest and examine a new channel through which dividend policy can impact firm value. Specifically, we show that dividend payers are less exposed to shocks in the aggregate market liquidity than non-dividend payers. Similarly, we find that the systematic liquidity risk is negatively associated with amount of dividends. Finally, in the context of signalling and agency costs models, we show that dividends are negatively related to stock price informativeness and that this relationship is stronger for firms with lower stock liquidity. The findings imply that dividend policy can both affect and be affected by stock markets.en_US
dc.description.sponsorshipUniversity of Bradforden_US
dc.language.isoenen_US
dc.rights<a rel="license" href="http://creativecommons.org/licenses/by-nc-nd/3.0/"><img alt="Creative Commons License" style="border-width:0" src="http://i.creativecommons.org/l/by-nc-nd/3.0/88x31.png" /></a><br />The University of Bradford theses are licenced under a <a rel="license" href="http://creativecommons.org/licenses/by-nc-nd/3.0/">Creative Commons Licence</a>.eng
dc.subjectDividend policyen_US
dc.subjectStock liquidityen_US
dc.subjectSystematic liquidity risken_US
dc.subjectCost of capitalen_US
dc.subjectStock price informativenessen_US
dc.titleDividend Policy, Stock Liquidity and Stock Price Informativenessen_US
dc.type.qualificationleveldoctoralen_US
dc.publisher.institutionUniversity of Bradfordeng
dc.publisher.departmentSchool of Management, Faculty of Management & Lawen_US
dc.typeThesiseng
dc.type.qualificationnamePhDen_US
dc.date.awarded2017
refterms.dateFOA2018-07-29T02:18:54Z


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