Ownership structure and dividend policy in Jordan
Main Article Content
Abstract
This study aims to examine the effect of ownership structure on dividend policy of
Jordanian manufacturing companies listed in Amman stock exchange. More specifically, the study
examine several hypotheses regarding the relationship between ownership structure (namely:
concentration, foreign, institutional, and managerial) and dividend policy. To achieve study
objective, this study uses a combination of time-series and cross-section data. Five year (2014-
2018) panel data of 61 companies are examined. In order to test the study hypotheses, the study
conduct F-test, Lagrange Multiplier test (LM- test), and the Hausman test to determine the best
statistical method (ordinary least squares method (OLS), fixed effects or random effects models).
The empirical findings of this study show that all the ownership variables (ownership
concentration, institutional ownership, and managerial ownership are insignificant in affecting the
dividend policy, and the direction of the relationship is positive except a negative relationship
between foreign ownership and dividend policy. Also, the empirical finding showed that the
company size and return on assets (ROA) were found to have a significant positive effect on
dividend policy, where as leverage was found to have a significant negative effect on dividend
policy.
Article Details
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