Abstract

The aim of this study is to examine listed Jordanian firms in terms of the issue of dividend policy stability. In more specific terms, the paper complements the econometric analysis of dividend stability with a survey of the Chief Financial officers (CFOs). Based on a total of 40 industrial firms and the time period 2002-2013, the results of the panel data analysis indicate that Jordanian firms follow stable dividend policy. In addition, the survey results support the econometric conclusions. Based on the results of this paper, it is recommended that future research should examine the issue of what really determines the dividend policy of Jordanian firms. In addition, given the fact that the industrial firms follow stable dividend policy, it would be extremely interesting to investigate whether or not these firms manage earnings in order to meet their dividend stability objective.

Highlights:

• Examining listed Jordanian industrial firms in terms of if the firms adopt stable dividend policy?
• The results reveal that the sample of firms do follow stable dividend policy Do Chief Financial officers’ (CFOs) views on dividend policy support or contradict the actual behaviour of dividend policy?

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