Ownership Structure and Dividend Policy: Empirical Evidence from Jordan

Abstract

The impact of corporate governance on company dividend policy was investigated using a sample of 87 nonfinancial companies including industrial and service listed on the Amman Stock Exchange from 2011 to 2019 to explain the relationship between board size, board independence, ownership managerial, ownership foreign, and dividend policy. By Using the random-effects generalized least square (GLS) regression model. The findings reveal that foreign ownership negatively influences with dividend policy, while board size, board independence, managerial ownership positively association with dividend policy. Further, board independence did not have a direct effect on dividend policy in Jordan. In addition, these rules and regulations need to be activated by the policy makers to ensure that firms comply with their requirements. Moreover, developing countries are in need of providing better compliance with international governance standards. This can be done by adopting good governance practices, improving shareholder rights and activating laws and regulations that govern firms' performance.