THE EFFECT OF OWNERSHIP STRUCTURE ON DIVIDEND POLICY IN JORDAN
Authors/Creators
- 1. Accounting Department, Faculty of Business, Applied Science Private University, Amman, Jordan.
- 2. Al-Ain University, Abu-Dhabi, UAE.
- 3. Business Administration Department, Faculty of Business, Applied Science Private University, Amman, Jordan.
Description
Abstract
The current research explores the ownership structure’s impact on the dividend policy from a Jordanian perspective. Above all, using data from industrial companies indexed on Amman Stock Exchange (ASE) between 2017 and 2021, the study reveals the impact of these concepts “Institutional ownership, foreign ownership, and managerial ownership” on dividend decisions. Confirmation of a positive relationship between institutional ownership and the probability of paying dividends is provided. Furthermore, the findings show a negative relationship between foreign ownership and paying dividends. Besides, the findings demonstrate that managerial ownership does not impact dividend payment decisions. The study, however, recommends taking into account the ownership structure among investors when investment decisions are made to assist them in selecting the appropriate investment opportunities.