Cardiff Metropolitan University
rgcv8i3p5.pdf (785.65 kB)

Dividend policy in the banking sector in G-7 and GCC countries: A comparative study

Download (785.65 kB)
journal contribution
posted on 2022-02-15, 16:32 authored by Hussam Hanifa, Mohammed Hamdan, Mohamed Haffar
Dividend policy has been a puzzling question for many years. This study attempts to identify the key factors affecting it in the financial sector that have been neglected in the literature. Using panel data on 621 Group of Seven (G-7) banks and 68 Gulf Cooperation Council (GCC) banks, five main factors namely, banks’ size, profitability, growth, leverage, and last year’s dividend were empirically tested regarding their impact on dividend payout ratios. In addition to comparing the two economies descriptively, the researchers employed panel data analysis using multiple regression with random effects. The findings revealed that the dividend payout ratio for the GCC countries is higher than G-7 countries in every year of the examined period (2010-2015). Furthermore, for both G-7 and GCC banks, profitability and last year dividend had a significant positive influence while banks’ leverage had a significant negative influence on the dividend payout. It was found also that banks’ size is an important dividend determinant in the G-7 countries only.


Published in

Risk Governance & Control: Financial Markets & Institutions


Virtus Interpress


  • VoR (Version of Record)


Hanifa, H., Hamdan, M., & Haffar, M. (2018) 'Dividend policy in the banking sector in G-7 and GCC countries: A comparative study', Risk Governance and Control: Financial Markets & Institutions, 8(3), 70-79.

Print ISSN


Electronic ISSN


Cardiff Met Affiliation

  • Cardiff School of Management

Cardiff Met Authors

Mohammed Hamdan

Cardiff Met Research Centre/Group

  • Welsh Centre for Business and Management Research

Copyright Holder

  • © The Authors


  • en

Usage metrics

    Welsh Centre for Business and Management Research - Journal Articles