Amal Mohammed Y Aljubaily; Dr. Dhakir Abbas Ali
Abstract:
TThis study examines how firm-specific financial metrics and macroeconomic factors influence sectoral stock market reactions to dividend announcements in Saudi Arabia. Using data from 68 firms across 12 sectors on the Tadawul (2014–2023), it applies event study and panel regression methods to measure abnormal returns. Key financial indicators including PSR, FCF, ROE, ROA, and capital efficiency ratios are analyzed to assess sector-specific responses. Results show varied reactions: consumer and service sectors respond more strongly and quickly, while capital-intensive and oil related sectors react more slowly or weakly. The random effects model, validated by diagnostic tests, proves most suitable. The findings offer insights into investor behavior and regulatory implications for improving transparency and resilience in emerging markets.
[ FULL TEXT PDF 1-8] DOI: 10.30566/ijo-bs/2025.04.143
