The relationship between intellectual capital efficiency and firms’ dividend policy: Do CEO characteristics matter?
The financial challenges facing the Jordanian economy require careful attention and strategic responses. Addressing these challenges may necessitate increased investment. This study explores the relationship between intellectual capital efficiency and firms’ dividend policies and the potential impac...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2024-07-01
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| Series: | Investment Management & Financial Innovations |
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| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/20446/IMFI_2024_03_Odat.pdf |
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| _version_ | 1832546406089359360 |
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| author | Mahmoud Odat Ruba Bsoul |
| author_facet | Mahmoud Odat Ruba Bsoul |
| author_sort | Mahmoud Odat |
| collection | DOAJ |
| description | The financial challenges facing the Jordanian economy require careful attention and strategic responses. Addressing these challenges may necessitate increased investment. This study explores the relationship between intellectual capital efficiency and firms’ dividend policies and the potential impact of CEO characteristics on this relationship. An analysis was based on data from 90 Jordanian service and manufacturing companies from 2015 to 2019. The study employs the value-added intellectual capital coefficient (VAIC) to measure intellectual capital efficiency and uses the dividend payout ratio to represent dividend policy. The findings indicate a positive relationship between VAIC and dividend policy, suggesting that companies with higher intellectual capital efficiency tend to distribute higher dividends. However, CEO characteristics, such as age, tenure, and educational background, do not significantly affect this relationship. These results imply that strong corporate governance mechanisms are likely in place, ensuring effective decision-making processes and protecting stakeholders’ interests. By focusing on intellectual capital, firms can enhance their operational performance and attractiveness to investors, indirectly supporting economic stability. |
| format | Article |
| id | doaj-art-78cebdf1b7f2464d9014c7cdc727d0ef |
| institution | Kabale University |
| issn | 1810-4967 1812-9358 |
| language | English |
| publishDate | 2024-07-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Investment Management & Financial Innovations |
| spelling | doaj-art-78cebdf1b7f2464d9014c7cdc727d0ef2025-02-03T07:08:32ZengLLC "CPC "Business Perspectives"Investment Management & Financial Innovations1810-49671812-93582024-07-01213849510.21511/imfi.21(3).2024.0820446The relationship between intellectual capital efficiency and firms’ dividend policy: Do CEO characteristics matter?Mahmoud Odat0https://orcid.org/0000-0003-1755-1143Ruba Bsoul1https://orcid.org/0000-0002-4896-5392Ph.D., Associate Professor, Faculty of Business, Department of Accounting, Yarmouk University, JordanPh.D., Assistant Professor in Accounting, Faculty of Business, Department of Accounting, Yarmouk University, JordanThe financial challenges facing the Jordanian economy require careful attention and strategic responses. Addressing these challenges may necessitate increased investment. This study explores the relationship between intellectual capital efficiency and firms’ dividend policies and the potential impact of CEO characteristics on this relationship. An analysis was based on data from 90 Jordanian service and manufacturing companies from 2015 to 2019. The study employs the value-added intellectual capital coefficient (VAIC) to measure intellectual capital efficiency and uses the dividend payout ratio to represent dividend policy. The findings indicate a positive relationship between VAIC and dividend policy, suggesting that companies with higher intellectual capital efficiency tend to distribute higher dividends. However, CEO characteristics, such as age, tenure, and educational background, do not significantly affect this relationship. These results imply that strong corporate governance mechanisms are likely in place, ensuring effective decision-making processes and protecting stakeholders’ interests. By focusing on intellectual capital, firms can enhance their operational performance and attractiveness to investors, indirectly supporting economic stability.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/20446/IMFI_2024_03_Odat.pdfdualityinvestmentJordanperformanceprofitsqualification |
| spellingShingle | Mahmoud Odat Ruba Bsoul The relationship between intellectual capital efficiency and firms’ dividend policy: Do CEO characteristics matter? Investment Management & Financial Innovations duality investment Jordan performance profits qualification |
| title | The relationship between intellectual capital efficiency and firms’ dividend policy: Do CEO characteristics matter? |
| title_full | The relationship between intellectual capital efficiency and firms’ dividend policy: Do CEO characteristics matter? |
| title_fullStr | The relationship between intellectual capital efficiency and firms’ dividend policy: Do CEO characteristics matter? |
| title_full_unstemmed | The relationship between intellectual capital efficiency and firms’ dividend policy: Do CEO characteristics matter? |
| title_short | The relationship between intellectual capital efficiency and firms’ dividend policy: Do CEO characteristics matter? |
| title_sort | relationship between intellectual capital efficiency and firms dividend policy do ceo characteristics matter |
| topic | duality investment Jordan performance profits qualification |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/20446/IMFI_2024_03_Odat.pdf |
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