Determinants of Sectoral Reactions in the Saudi Stock Market

International Journal of Business Society, Vol. 9, Issue 4
Amal Mohammed Y AljubailyDr. Dhakir Abbas Ali
Sectoral stock returnsSaudi marketAbnormal returnsEvent studyDividendsEmerging markets
PDFRegular IssueDOI: 10.30566/ijo-bs/2025.04.143
9Volume
4Issue

Abstract

This 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.

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Article Information

Article Details
Volume & IssueVol. 9, Iss. 4
Publication DateApr 30, 2025
Authors
Amal Mohammed Y Aljubaily
Dr. Dhakir Abbas Ali
DOI
10.30566/ijo-bs/2025.04.143
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Determinants of Sectoral Reactions in the Saudi Stock Market | International Journal of Business Society