The impact of firm characteristics on dividends in Jordan: Institutional ownership as moderating variable

Abstract

The objective of this research was to look at how firm attributes like age, size, as well as profitability affected the number of dividends paid. It also looked at how institutional ownership affected the connection between all these corporate characteristics as well as dividend payments as a moderating factor. A sample of forty publicly traded industrial businesses that were listed between 2016 and 2020 on the stock exchange in Amman were included in the research. The research analyzed the variables utilizing acceptable descriptive statistical techniques and used a model of multiple regression to test its predictions. The study's conclusions demonstrated that a company's size, years of existence, and income all positively affect dividend payments. Additionally, it found that corporate ownership had a strong correlation with dividend influence, as did both firm size as well as profitability. On the other hand, it discovered a negative correlation between the age of the firm as well as institutional ownership in terms of dividend effect. The research concludes with a proposal that Jordanian industrial enterprises should take size, years of operation, and profitability into account when determining how much dividend to pay out, acknowledging their important roles as well as effects on dividend distribution.