Table 2

Variables and definitions

VariablesSymbolsDefinitionsExpected direction of effect
Dependent variable
Market value of bankMVThe closing share price multiplied by the number of ordinary shares outstanding for bank i at the end of year t over the period 2000–2015 
Main Independent Variables
Book valueBVTotal equity divided by number of shares of bank i at the end of year t over the period 2000–2015+
Residual incomeRICurrent earnings per share (Xt) less the risk-free rate (r) times book value per share at the beginning of year t (BVt1) of bank i over the period 2000–2015+
Dividend payoutsDPORThe ratio of dividends per share to earnings per share of banki at the end of year t over the period 2000–2015+/−
Dividend yieldDYRThe ratio of dividend per share to price per share of bank i at the end of year t over the period 2000–2015+/−
IslamicIslamicDummy = 1 if a bank is Islamic, else zero+/−
Independent Control Variables
SizeSIZEThe natural logarithm of the total assets of bank i at the end of year t from 2000 to 2015+
Global financial crisisFCRDummy variable for the time period of the global financial crisis; FCR = 1 for years 2008 and 2009 and FCR = 0 otherwise
Arabic spring crisisASCDummy variable for the time period of the Arabic spring crisis; ASC = 1 for years 2010 and 2011 and ASC = 0 otherwise

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