Dividend Policy of Jordanian Firms: Stability Tests and Survey Results

This study investigates the dividend behaviour of the Jordanian companies listed in Amman Stock Exchange. In specific, it examines whether dividends policy differs according to firm size, whether it differs for diverse sectors and whether it is stable over time. The sample of the study consists of 90 Jordanian companies listed in Amman Stock Exchange (ASE), 30 companies from each sector: financial, services and industrial, with 990 observations of dividends per share (DPS), earnings per share (EPS) and market capitalization (MC) over the period (2006–2016). The study uses non‐parametric tests in addition to regression analysis. Results show that there are statistically significant differences between DPS in the three sectors (financial, industrial and services). Statistically significant differences in DPS between different sized companies in the three sectors (financial, industrial and services) in ASE are also found. The dividends are stable over time.

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“…Our results are consistent with those of Omet (2004) and Yaseen et al (2015) who find that the Jordanian firms follow a stable dividend policy.…”

Section: Results Of Analysissupporting

confidence: 93%

“…Yaseen, Omet, and Abu Khalaf (2015) examine listed Jordanian firms in terms of the issue of dividend policy stability and complement the econometric analysis of dividend stability with a survey of the Chief Financial officers. The sample of the study consists of (40) industrial firms over the period (2002–2013).…”

Section: Literature Reviewmentioning

confidence: 99%

The dividends behaviour of the Jordanian companies listed in Amman Stock Exchange: Three essays

2020

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“…Therefore, past dividends were found to be significant to dividend payout. The viewpoint regarding past dividend as a reference point for current dividend decisions is broadly consistent with previous studies reported by Kighir et al (2015) in Malaysia, Yaseen et al (2015) in Jordan, Andres and Hofbaur (2017) in the US, and Bostanci et al (2018) in Turkey. Thus, this study proposes the following hypothesis: H 3 : A firm's propensity to pay dividends is negatively related to the past dividend (PDIV).…”

Section: Introductionsupporting

confidence: 89%

Dividend Payout Policy and Global Financial Crisis: A Study on Malaysian Non-Financial Listed Companies

Chan

Boo²,

Ali³

2021

AJBA

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Manuscript type: Research paper Research aims: This paper examines the impact of the global financial crisis on Malaysia non-financial index firms’ dividend policies. Design/Methodology/Approach: This paper used panel data of 495 firm-year observations of Malaysian non-financial index firms from 2006 to 2016. Research findings: Our findings indicate that firms adjust their dividend policies during the pre-crisis and post-crisis periods; more profitable and larger firms are more likely to distribute their dividend payouts, whereas firms with higher leverage are more likely to omit their dividends. Moreover, dividend policies that will increase firms’ valuation are adopted in Malaysia. This is reflected in the signalling theory with evidence that higher profitability exerts a positive influence on firms’ propensity to increase and/or maintain dividends over different study periods, implying that markets attach a high valuation to firms that can pay, especially during the crisis period. We also find the role of catering theory and smoothing hypothesis lost relevance in both crisis and non-crisis periods. Thus, the catering theory and smoothing hypothesis were not supported in Malaysia. Theoretical contribution/Originality: This study investigates the impact of the global financial crisis on Malaysia non-financial index firms’ dividend policies. This paper suggestion can act as a catalyst to more comprehensive and detailed researches and studies on dividend policy in any economic landscapes. Practitioner/Policy implications: This paper may also guide companies on the structure and use of dividend distribution over the precrisis, during the crisis, and post-crisis periods. Research limitation/Implications: One limitation of the study is that the measures used for dividend payout determinants are only based on the theory investigated. These measures may not completely reflect all the payout determinants. Future research could address this limitation by employing other factors in the study of dividend policy such as inflation, economic growth, and corporate governance.

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“…The study revealed that a situation with the payment of dividends in the corporate sector in Ukraine is quite indistinctive for more developed and emerging stock markets where payment of dividends is not an exclusion [Baker and Kapoor 2015, Forti and Schiozer 2015, Kadioglu et al 2015, Manneh and Naser 2015, Yaseen et al 2015 Is it possible to explain the mass abandonment of dividends payment with the help of modern theories of dividend policy, that were considered in the LITERATURE REVIEW section?.…”

Section: Discussionmentioning

confidence: 99%

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2016

Metody Ilościowe W Badaniach Ekonomicznych

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The fast advancing global information infrastructure (including information technology and computer networks such as the internet and telecommunications systems enable the development of electronic commerce at a global level. The nearly universal connectivity which the Internet offers has made it an invaluable business tool. These developments have created a new type of economy, which many call the 'digital economy'. The aim of this paper is to offer the reader a means by which human involvement in e-banking may be evaluated and improved. At the heart of this problem lies a need to characterise human involvement, since, once the issues are clear, the specific e-banking factors can be related to them in the form of a model. In this work we therefore take as our task: 1. What do we mean by human involvement or participation, and how does this compare to the often overwhelmingly technology-based approaches to information systems developments? 2. Where might human involvement be grounded theoretically? 3. How is this theoretical grounding to be taken forward to a set of pragmatic approaches to be applied by practising managers? E-banking owes its existence to a revolution in the enabling technologies. In this paper, however, we are less concerned with the technologies in themselves, and more with how value and advantage may be leveraged from them. To understand the issues here we need to go back to their roots, which lie in the adoption and application of information technology. In the early days of IT, most approaches to its implementation and management focused on the technology (the so-called "technology-based" approach). The sections which follow therefore begin with this, before outlining the more recent human-centred methods which are of such value in e-banking. Consequently, we will first look at participation from a recent historical perspective, and use this to develop an approach to human involvement which is applicable to the domain of e-banking. Finally, we will present action guidelines for human involvement in e-banking, and describe how these may be used to evaluate and implement e-banking solutions which are true to participative needs.

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Dividend Policy of Jordanian Firms: Stability Tests and Survey Results

Abstract: The aim of this study is to examine listed Jordanian firms in terms of the issue of dividend policy stability. In more specific terms, the paper complements the econometric analysis of dividend stability with a survey of the Chief Financial officers (CFOs).

Cited by 4 publications

References 34 publications

The dividends behaviour of the Jordanian companies listed in Amman Stock Exchange: Three essays

The dividends behaviour of the Jordanian companies listed in Amman Stock Exchange: Three essays

Dividend Payout Policy and Global Financial Crisis: A Study on Malaysian Non-Financial Listed Companies

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