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.:
- Kale, Jayant R & Noe, Thomas H, 1990. "Dividends, Uncertainty, and Underwriting Costs under Asymmetric Information," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 13(4), pages 265-77, Winter.
- Kale, Jayant R. & Shahrur, Husayn, 2007. "Corporate capital structure and the characteristics of suppliers and customers," Journal of Financial Economics, Elsevier, vol. 83(2), pages 321-365, February.
- Myers, Stewart C., 1984. "Capital structure puzzle," Working papers 1548-84., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1998.
"Agency Problems and Dividend Policies Around the World,"
Harvard Institute of Economic Research Working Papers
1839, Harvard - Institute of Economic Research.
- Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 2000. "Agency Problems and Dividend Policies around the World," Journal of Finance, American Finance Association, vol. 55(1), pages 1-33, 02.
- Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer & Robert Vishny, 1998. "Agency Problems and Dividend Policies Around the World," NBER Working Papers 6594, 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.
- 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.
- Myers, Stewart C, 1984. " The Capital Structure Puzzle," Journal of Finance, American Finance Association, vol. 39(3), pages 575-92, July.
- 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.
- Merton H. Miller & Franco Modigliani, 1961. "Dividend Policy, Growth, and the Valuation of Shares," The Journal of Business, University of Chicago Press, vol. 34, pages 411.
- 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.
- Sudipto Bhattacharya, 1979. "Imperfect Information, Dividend Policy, and "The Bird in the Hand" Fallacy," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 259-270, Spring.
- Stewart C. Myers, 1984. "Capital Structure Puzzle," NBER Working Papers 1393, National Bureau of Economic Research, Inc.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Chau).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.