International Journal of Entrepreneurship (Print ISSN: 1099-9264; Online ISSN: 1939-4675)

Abstract

The Effect of Profit and Cash Indices and the Financial Increase on the Distribution of Cash Profits in the Industrial Companies Listed in Amman Stock Exchange

Author(s): Ali A Alzoubi.

This study aims to investigate the effect of profit and cash indices as well as financial leverage on the distribution of cash profits in the industrial companies listed in Amman Stock Exchange during the period (2009-2016). A simple stepwise regression analysis was used to test the hypotheses of the study. The outcomes were the lack of the impact of financial leverage indices on the distribution of cash profits, and the presence of an impact of profitability and cash indices on the proportion of cash dividends. The study also found a model that can be used to predict the distribution of cash dividends based on the monetary and profitability indices of Jordanian industrial companies. Finally, the study recommends that cash and profitability indices can be used to predict cash dividends and further studies.

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