Abstract
Exploring the significance of ESG performance is especially crucial in the Middle East, North Africa, and Turkey (MENAT) area, where economic and cultural environments differ. The study aims to empirically assess the relationship between firms’ dividend policy and ESG performance in MENAT, along with the moderating effect of audit quality. The research is novel in exploring this link in the MENAT region. The study uses dividend yield (DY) as the dependent variable and yearly ESG combined score from the Eikon Refinitiv database, which range from 0 to 100 as the primary independent variable, with control variables as retained earnings, profitability, firm size, and financial leverage. The results indicate a significant negative relationship between ESG scores and dividend yields, suggesting a trade-off between prioritizing ESG factors and short-term returns. The moderating effect of audit quality on the ESG-dividend policy connection is insignificant. Additionally, retained earnings and corporate size have positive effects on dividend policy, while financial leverage has a negative impact. Profitability shows an insignificant effect on dividend yield.
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Artikel in diesem Heft
- Frontmatter
- Research Articles
- Estimating the Growth Impact of Economic Transformation in Qatar
- EU-Med Capital Market Integration and the EU’s Covered Bonds Directive
- Long-Run Volatility Memory Dynamics and Inter-Market Linkages in GCC Equity Markets: Application of DCC-FIGARCH Models
- Exploring the Relationship Between ESG Performance and Dividend Policy in MENAT Region: The Role of Audit Quality
Artikel in diesem Heft
- Frontmatter
- Research Articles
- Estimating the Growth Impact of Economic Transformation in Qatar
- EU-Med Capital Market Integration and the EU’s Covered Bonds Directive
- Long-Run Volatility Memory Dynamics and Inter-Market Linkages in GCC Equity Markets: Application of DCC-FIGARCH Models
- Exploring the Relationship Between ESG Performance and Dividend Policy in MENAT Region: The Role of Audit Quality