Purpose

This paper aims to present a comparative evaluation of the determinants affecting the likelihood of dividend payouts by Islamic and conventional banks in the Gulf Cooperation Council (GCC) countries.

Design/methodology/approach

The authors used the dynamic panel logit model to test dividend life-cycle theory by analyzing the determinants affecting the likelihood of dividend payouts by GCC banks. Moreover, the authors used multinomial logistic regressions to extend the results where the dependent variable is a nominal variable equal to 1 for non-payment of dividends, 2 for lower dividend payments and 3 for higher dividend payments.

Findings

The authors report a finding consistent with the life-cycle theory of dividends where a higher proportion of retained-earnings-to-contribution mix implies a greater likelihood of dividend payments, apart from conventional characteristics such as profitability, size and growth. However, the authors find marked differences in the magnitude and significance of the life-cycle characteristics explaining the likelihood of dividend payouts for Islamic and conventional banks. The authors also find that Islamic banks are smaller and less profitable relative to conventional banks but have higher growth rates, which helps to explain why the proportion of dividend non-payments is higher for Islamic banks than for conventional banks. The results also indicate that the higher default rates and business risk associated with GCC banks reduces their propensity to pay dividends.

Practical implications

The topic of dividends remains an important puzzle in the field of modern finance. The findings have significant implications for a variety of stakeholders in both Islamic and conventional banks in GCC countries, including investors, depositors, analysts, managers, regulators and stock exchanges.

Originality/value

This paper aims to contribute to the literature by drawing on life-cycle theory as a basis for comparing the determinants affecting the likelihood of dividend payouts by Islamic and conventional banks in the GCC countries.

中文翻译：

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在海湾合作委员会国家的伊斯兰和传统银行业中测试股息生命周期理论

目的

本文旨在对影响海湾合作委员会（GCC）国家的伊斯兰银行和常规银行支付股息的可能性的决定因素进行比较评估。

设计/方法/方法

作者通过分析影响GCC银行支付股息可能性的决定因素，使用动态面板对数模型测试了股息生命周期理论。此外，作者使用多项逻辑回归来扩展结果，其中因变量是名义变量，对于未支付的股息等于1，对于较低的股息支付为2，对于较高的股息支付为3。

发现

作者报告的发现与股息的生命周期理论相符，该发现中保留收益与缴款混合的比例更高，这意味着除获利能力，规模和增长等常规特征外，股息支付的可能性也更大。但是，作者发现生命周期特征的大小和重要性存在明显差异，这说明了伊斯兰银行和传统银行支付股息的可能性。作者还发现，与传统银行相比，伊斯兰银行规模较小且利润较低，但增长率较高，这有助于解释为什么伊斯兰银行的未支付股息比例要高于传统银行。

实际影响

股息主题仍然是现代金融领域的一个重要难题。这些发现对海湾合作委员会国家的伊斯兰银行和传统银行的各种利益相关者都有重大影响，包括投资者，储户，分析师，经理，监管者和证券交易所。

创意/价值

本文旨在通过使用生命周期理论为文献做出贡献，作为比较影响GCC国家中伊斯兰银行和常规银行支付股息的可能性的决定因素的基础。