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International Journal of Psychology and Cognitive Science

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Factors Affecting the Payout Policies of Companies Listed on the Jordanian Stock Exchange Market

International Journal of Psychology and Cognitive Science
Vol.4 , No. 4, Publication Date: Dec. 2, 2018, Page: 155-167

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Authors

[1]	Saleh Fadel Ahmad Khatib, Department of Accounting & Finance, Limkokwing University of Creative Technology, Cyberjaya, Malaysia.
[2]	Abdulrahman Ali Mohsen Al-Harethi, Department of Project Management, Limkokwing University of Creative Technology, Cyberjaya, Malaysia.

Abstract

The purpose of this study is to identify the principal factors affecting the payout policies of companies listed on the Jordanian Stock Exchange Market. Since share repurchase was allowed in Jordan in 2006, the payout policies might be influenced. Based on the theoretical considerations, a model was proposed to examine its relationship with affecting factors. A quantitative analytical method was used, a total of 400 questionnaires were distributed to department managers from 70 out of 111 listed companies in Jordan, 350 were collected and 330 usable questionnaires were analyzed. Statistical Package for the Social Sciences (SPSS) was used for the data analysis. Based on the statistical findings, the payout policies have a significant relationship with the affecting factors. It also concluded a detailed view on the characteristics of companies’ payout policies and provided information about the importance and the sensitive role of the affecting factors on analyzing the corporate strategies regarding payout policies toward shareholders. The findings resulted from this study may be able to provide some practical insight for the financial specialist about the current technique that companies implement when the decision to distribute profits to shareholders. This study might pave the way for further studies on payout policies. Further studies could be carried out to identify other factors that may impact the payout policies.

Keywords

Payout Policies, Stock Exchange Market, Listed Companies, Jordan

Reference

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