Dividend Pay-out Policy and Share Price: A Study of Listed Firms in Morocco

  • Riad Lamyaa Professeur de l’enseignement Supérieur Assistant EST laayoune, Université Ibn Zohr Agadir
  • Dekri Meriam Professeur de l’enseignement Supérieur Assistant FSJES Marrakech, Université Cadi Ayyad
  • Touili Karima Professeur de l’enseignement Supérieur LRMD, FEG Settat, Université Hassan Premier Settat
Keywords: Stock price, Dividend Policy, panel data


The main purpose of this study is to examine the relationship between dividend policy and financial performance in Morocco stock market. The panel data regression method is used to analyze the relationship of share price with dividend per share. This study presumes that dividend policy has an effect on the share price in Morocco. Also, it assumes that companies that pay dividends tend to have a higher financial performance than those that do not. On the other hand, companies that do not distribute dividends are more indebted and have a smaller size compared to distributors. The results of the econometric analysis conducted indicate that the dividends distributed and the profits are found to be significantly positive for the financial performance of Moroccan companies.


Download data is not yet available.


1. Al Malkawi, HAN. (2007). Determinants of corporate dividend policy in Jordan: an application of the Tobit model. Journal of Economic and Administrative Sciences.
2. Anand, M. (2004). Factors influencing dividend policy decisions of corporate India. ICFAI Journal of Applied Finance, 10(2), 5-16.
3. Asquith, P., & Mullins Jr, D. W. (1983). The impact of initiating dividend payments on shareholders' wealth. Journal of business, 77-96.
4. Baker, M. et Wurgler, J. (2004b). Appearing and disappearing dividends: the link to catering incentives. Journal of Financial Economics, 73, 271–288.
5. Bhattacharya, S., (1979). Imperfect Information, Dividend Policy, and "the Bird in the Hand" Fallacy. Bell Journal of Economics, 10, 259-270.
6. Brealey, R. A., Myers, S. C., & Allen, F. (2008). Principles of Corporate Finance.
7. Collins, J. (1957). How to study the behavior of bank stocks. Financial Analysts Journal, 13(2), 109-113.
8. De Angelo, H., et De Angelo, L. (2006). The Irrelevance of the MM Dividend Irrelevance Theorem. Journal of Financial Economics, 79, 293–315.
9. Easterbrook, F. H. (1984). Two agency-cost explanations of dividends. The American economic review, 74(4), 650-659.
10. Ecosip. (1999). Dialogues auteur de la performance en entreprise : les enjeux. Paris : s.n., L'Harmattan.
11. Fama, E. F., & French, K. R. (2001). Disappearing dividends: changing firm characteristics or lower propensity to pay?. Journal of Financial economics, 60(1), 3-43
12. Farsio, F., Geary, A et Moser, J. (2004). The Relationship between Dividends and Earnings. Journal for Economic Educators, 4(4) , 1-5.
13. Gordon, M.J. (1963). Optimal Investment and Financing Policy. Journal of Finance, 18, 264-272.
14. Jensen, M. C. (1986). Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers, American Economic Association Papers and Proceedings, 76, (2), 323-329.
15. Jenson, M.C. and Meckling, W. (1976), “Theory of the firm: managerial behaviors, agency costs and capital structure”, Journal of Financial Economics, Vol. 3, 305-60.
16. Ji-ming, L., & Zhao-hua, W. (2009, August). An empirical study of the relationship between corporate dividend policy and financial performance of chinese listed companies. In 2009 ISECS International Colloquium on Computing, Communication, Control, and Management (Vol. 1, pp. 190-193). IEEE.
17. John, K., & Williams, J. (1985). Dividends, dilution, and taxes: A signalling equilibrium. the Journal of Finance, 40(4), 1053-1070.
18. Lintner, J., (1962). Dividends, Earnings, Leverage, Stock Prices, and the Supply of Capital to Corporations. Review of Economics and Statistics, 44, 243–269.
19. M'rabet, R., & Boujjat, W. (2016). The relationship between dividend payments and firm performance: A study of listed companies in Morocco. European scientific journal, 12(4).
20. Rozeff, M.S. (1982). Growth, beta and agency costs as determinants of dividend payout ratios. Journal of Finantial Research. 5(3), 249-259.
21. Stiriba, L., (2013), Decision of financing, Policy of Dividends and Creation of the Value  : Determination test, National school of Trade and Management, Agadir.
How to Cite
Lamyaa, R., Meriam, D., & Karima, T. (2022). Dividend Pay-out Policy and Share Price: A Study of Listed Firms in Morocco. European Scientific Journal, ESJ, 12, 209. Retrieved from https://eujournal.org/index.php/esj/article/view/16212
ESI Preprints