Dividend Policy and IPO : Evidence from GCC Firms

We investigate the persistence of the dividend policy following the initial public offering (IPO) in non-financial Gulf Cooperation Council (GCC) firms during the period 2000-2019. Using various regression models, we confirm that non-financial GCC firms maintain a persistent dividend policy from their IPO year onwards. consistent with the imprinting theory rather than the life cycle theory. This finding is more pronounced in large firms and higher-profitability firms due to their better ability to maintain a persistent dividend policy. The results also indicate that the persistence of dividend policy is affected by macroeconomic conditions such as the financial crisis and drop in oil prices