Dividend Distribution Policy and Corporate Response Behavior: Analytical Research on Companies in the Industrial Sector on the Iraq Stock Exchange

Abstract

This study was designed to investigate the effect of dividend policy on the performance of companies operating in the industrial sector in Iraq. Steady performance can be controlled by using four variables: firm size, firm growth, financial leverage (debt-to-equity ratio), and corporate governance index. The data used in the current study were represented seven years period (2014-2020). The data were analyzed by using descriptive statistics, correlation, OLS regression, Lagrangian multiplier, Haussmann test, constant effects models and random effects. Furthermore, the main results of each objective obtained were followed up through the analysis method adopted. The results of the present study revealed a negative correlation between the dividend policy and profitability. Just as the size of the company, and the leverage came with a negative moral effect.