Abstract

This paper examines the possible association between audit committee’s effectiveness and Jordanian industrial
public shareholding companies’ dividend payout policy. Data was collected through two sources; first, a
questionnaire survey was distributed to 63 listed Jordanian firms to collect data concerning degrees of audit
committees’ effectiveness. Second, data concerning dividends payout policies was collected from published data
for Jordanian firms. The results of the multiple regressions indicated that there is no significant relationship
between audit committees’ effectiveness factors and dividends payout policies proxied by both TOBINS Q and
ROA. This result implies that other theories might explain the dividend payout policy in the Jordanian firms.

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