The impact of ownership structure on dividend policy of listed firms in Jordan

This study investigates the impact of ownership structure on the dividend policy in Jordan. In particular, it aims to uncover the effects of family ownership, institutional ownership, foreign ownership, and state ownership on dividend decisions for a sample of 66 Jordanian industrial and service fir...

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Autor principal:	Hanady Bataineh
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2021
Materias:	dividends ownership tobit regression agency theory amman stock exchange Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/610ec146443841ac92f4b81d9b7642ae
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id	oai:doaj.org-article:610ec146443841ac92f4b81d9b7642ae
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spelling	oai:doaj.org-article:610ec146443841ac92f4b81d9b7642ae2021-12-02T11:46:40ZThe impact of ownership structure on dividend policy of listed firms in Jordan2331-197510.1080/23311975.2020.1863175https://doaj.org/article/610ec146443841ac92f4b81d9b7642ae2021-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2020.1863175https://doaj.org/toc/2331-1975This study investigates the impact of ownership structure on the dividend policy in Jordan. In particular, it aims to uncover the effects of family ownership, institutional ownership, foreign ownership, and state ownership on dividend decisions for a sample of 66 Jordanian industrial and service firms listed on the Amman Stock Exchange (ASE) for the period 2014–2017. Tobit Panel Regression is used to test the hypotheses of the study. The results show a significant positive association between institutional ownership and dividend yield, while foreign ownership is associated with a less likelihood of paying dividends. No evidence is found to support that family ownership and state ownership have an impact on dividend yield. Hence, the study provides a clear evidence that high institutional ownership as an external control mechanism increases the need to pay dividends. The results also indicate that Jordanian listed firms have highly concentrated ownership structures and are mainly dominated by families followed by financial institutions, then foreign investors while the state shows relatively lower ownership. The study recommends that investors should take into account ownership structure when making investment decisions to help them choose the best investment opportunities.Hanady BatainehTaylor & Francis Grouparticledividendsownershiptobit regressionagency theoryamman stock exchangeBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 8, Iss 1 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	dividends ownership tobit regression agency theory amman stock exchange Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	dividends ownership tobit regression agency theory amman stock exchange Business HF5001-6182 Management. Industrial management HD28-70 Hanady Bataineh The impact of ownership structure on dividend policy of listed firms in Jordan
description	This study investigates the impact of ownership structure on the dividend policy in Jordan. In particular, it aims to uncover the effects of family ownership, institutional ownership, foreign ownership, and state ownership on dividend decisions for a sample of 66 Jordanian industrial and service firms listed on the Amman Stock Exchange (ASE) for the period 2014–2017. Tobit Panel Regression is used to test the hypotheses of the study. The results show a significant positive association between institutional ownership and dividend yield, while foreign ownership is associated with a less likelihood of paying dividends. No evidence is found to support that family ownership and state ownership have an impact on dividend yield. Hence, the study provides a clear evidence that high institutional ownership as an external control mechanism increases the need to pay dividends. The results also indicate that Jordanian listed firms have highly concentrated ownership structures and are mainly dominated by families followed by financial institutions, then foreign investors while the state shows relatively lower ownership. The study recommends that investors should take into account ownership structure when making investment decisions to help them choose the best investment opportunities.
format	article
author	Hanady Bataineh
author_facet	Hanady Bataineh
author_sort	Hanady Bataineh
title	The impact of ownership structure on dividend policy of listed firms in Jordan
title_short	The impact of ownership structure on dividend policy of listed firms in Jordan
title_full	The impact of ownership structure on dividend policy of listed firms in Jordan
title_fullStr	The impact of ownership structure on dividend policy of listed firms in Jordan
title_full_unstemmed	The impact of ownership structure on dividend policy of listed firms in Jordan
title_sort	impact of ownership structure on dividend policy of listed firms in jordan
publisher	Taylor & Francis Group
publishDate	2021
url	https://doaj.org/article/610ec146443841ac92f4b81d9b7642ae
work_keys_str_mv	AT hanadybataineh theimpactofownershipstructureondividendpolicyoflistedfirmsinjordan AT hanadybataineh impactofownershipstructureondividendpolicyoflistedfirmsinjordan
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The impact of ownership structure on dividend policy of listed firms in Jordan

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