Determinants of Changes Dividend Behavior Policy: Evidence from the Amman Stock Exchange
AbstractThe motivation for these studies is the international extensive researches about factors that might be important in determining firms dividend policy. There are many reasons explaining why dividend policy is so interesting. One reason is that the dividend policy of the firm affects its capital structure, since the retained earnings intent to fund the firm. Otherwise, the firm has to raise funds by issuing new debt. The behavior of dividend policy is the most debate able issue in the corporate finance literature and still keeps its prominent place both in developed and emerging markets. Dividend policy is one of the most intriguing topics in financial research. Even now, economists provide considerable attention and thought to solving the dividend puzzle, resulting in a large number of conflicting hypotheses, theories and explanations. This paper aims to determine the dividend policies of the 60 industrial firms listed on the Amman stock exchanges (ASE) for the period of 2005-2009, and to explain their dividend payment behavior. This study used the tobit regression analysis, and logit regression analysis, and hence the random effects tobit/logit models are favorable than the pooled models. The paper finds that the dividend policy in Jordan as a developing country is influenced by factors similar to those relating to developed countries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Far East Research Centre in its journal Far East Journal of Psychology and Business.
Volume (Year): 4 No 2 Paper 1 August (2011)
Issue (Month): 1 (August)
Contact details of provider:
Web page: http://www.fareastjournals.com/journal_detail.aspx?jid=18
Dividend Policy; Corporate Leverage; Agency Theory JEL Classification Code: G30; G32; G35;
Other versions of this item:
- Dr. Faris Nasif AL- Shubiri, 2012. "Determinants Of Changes Dividend Behavior Policy: Evidence From The Amman Stock Exchange," Far East Journal of Marketing and Management, Far East Research Centre, vol. 2(1), pages 1-13, August.
- M1 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stewart C. Myers & Nicholas S. Majluf, 1984. "Corporate Financing and Investment Decisions When Firms Have InformationThat Investors Do Not Have," NBER Working Papers 1396, National Bureau of Economic Research, Inc.
- Myers, Stewart C, 1984. " The Capital Structure Puzzle," Journal of Finance, American Finance Association, vol. 39(3), pages 575-92, July.
- Stewart C. Myers, 1984. "Capital Structure Puzzle," NBER Working Papers 1393, National Bureau of Economic Research, Inc.
- John R. Graham & Mark H. Lang & Douglas A. Shackelford, 2004.
"Employee Stock Options, Corporate Taxes, and Debt Policy,"
Journal of Finance,
American Finance Association, vol. 59(4), pages 1585-1618, 08.
- John R. Graham & Mark H. Lang & Douglas A. Shackelford, 2002. "Employee Stock Options, Corporate Taxes and Debt Policy," NBER Working Papers 9289, National Bureau of Economic Research, Inc.
- Myers, Stewart C. & Majluf, Nicolás S., 1945-, 1984. "Corporate financing and investment decisions when firms have information that investors do not have," Working papers 1523-84., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Myers, Stewart C. & Majluf, Nicholas S., 1984. "Corporate financing and investment decisions when firms have information that investors do not have," Journal of Financial Economics, Elsevier, vol. 13(2), pages 187-221, June.
- Myers, Stewart C., 1984. "Capital structure puzzle," Working papers 1548-84., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Varouj Aivazian & Laurence Booth & Sean Cleary, 2003. "Do Emerging Market Firms Follow Different Dividend Policies From U.S. Firms?," Journal of Financial Research, Southern Finance Association & Southwestern Finance Association, vol. 26(3), pages 371-387.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Chau).
If references are entirely missing, you can add them using this form.