Investor protection and dividend policy: The case of Islamic and conventional banks

What is it about?

This study examines the dividend policy behavior of Islamic and conventional banks operating in Arab markets. These banks operate in an environment of Sharia law and low levels of investor protection.

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Why is it important?

Dividend policy behaviors of financial companies, specifically those of conventional and Islamic banks, have not been explored adequately in the literature. We comparatively analyze Arab countries wherein there is no dividend tax and where a dual banking system is used. In these countries, investor protection is poor, and Islamic banks strictly comply with Sharia principles.