Overview

Original Research

THE EFFECT OF OWNERSHIP STRUCTURE ON DIVIDEND POLICY IN JORDAN

YOUSEF ABU-SIAM 1, MAHMOUD NASSAR 2, MOHAMMED JIBREEL 3, MAJED QABAJEH 4, and AYMAN MANSOUR 5.

Vol 17, No 12 ( 2022 )   |  DOI: 10.5281/zenodo.7477043   |   Author Affiliation: Accounting Department, Faculty of Business, Applied Science Private University, Amman, Jordan 1,3,4; Al-Ain University, Abu-Dhabi, UAE 2; Business Administration Department, Faculty of Business, Applied Science Private University, Amman, Jordan 5.   |   Licensing: CC 4.0   |   Pg no: 1498-1509   |   To cite: YOUSEF ABU-SIAM, et al., (2022). THE EFFECT OF OWNERSHIP STRUCTURE ON DIVIDEND POLICY IN JORDAN. 17(12), 1498–1509. https://doi.org/10.5281/zenodo.7477043   |   Published on: 23-12-2022

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.

Keywords

Ownership Structure; Agency Theory; Dividends Policy; Jordan