The Signaling Effects and Predictive Powers of Dividend Announcements: Evidence from Kingdom of Saudi Arabia

  title={The Signaling Effects and Predictive Powers of Dividend Announcements: Evidence from Kingdom of Saudi Arabia},
  author={Anas Al Qudah and Ahmed A. A. Badawi},
  journal={Econometrics: Econometric \& Statistical Methods - General eJournal},
This study examines the implications of changes in dividends in the market of Kingdom of Saudi Arabia (KSA). First, the research analyzes changes in dividends within the context of signaling hypothesis. Second, this study examines another aspect of signaling hypothesis by testing the abilities of dividends to predict future earnings and cash flows of Saudi firms. Financial economists have explored various aspects of changes in dividends and earnings for well developed markets such as markets of… 
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