What Determines the Dividend Payout Ratio for Jordanian Industrial Firms?

Philip A. Hamill and Wasim Al-Shattarat
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Philip A. Hamill: Philip A. Hamill, Department of Accounting, Finance and Economics, Ulster Business School, University of Ulster, Shore Road, Newtownabbey, Co. Antrim, Northern Ireland, BT37 0QB, UK. E-mail: pa.hamill@ulster.ac.uk
Wasim Al-Shattarat: Wasim Al-Shattarat, College of Business Administration, Gulf University for Science and Technology, P.O. Box 7207, Hawally 32093, Kuwait. E-mail: Shattarat.W@gust.edu.kw

Journal of Emerging Market Finance, 2012, vol. 11, issue 2, 161-188

Abstract: There is a plethora of empirical evidence testing theories which have been proposed to explain dividend policies and assessments of managerial opinions for firms listed on developed markets’ stock exchanges. In contrast, the evidence for emerging markets is limited. We investigate the determinants of the dividend payout ratio (DPR) for a sample of Jordanian listed firms. Consistent with the agency cost hypothesis, the level of inside ownership, the number of shareholders and the level of institutional ownership significantly influenced the DPR. Firm size was also significant supporting the transaction-cost hypothesis. Our empirical analysis failed to find any evidence to support the signalling hypothesis. JEL Classification : G32, G35, G38

Keywords: Dividend policy; dividend payout ratio; Jordan (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:sae:emffin:v:11:y:2012:i:2:p:161-188

DOI: 10.1177/0972652712454515

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