The Retained Earnings Effect on the Firm’s Market Value: Evidence from Jordan
The aim of this study was to investigate the effect of the retention per share compared to the dividend per share by modeling the firm’s market value as a function of the retention per share and the dividend per share for all firms in the Jordanian context using unbalanced panel data analysis for a...
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-07-01
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| Series: | International Journal of Financial Studies |
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| Online Access: | https://www.mdpi.com/2227-7072/11/3/89 |
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| author | Firas N. Dahmash Hashem Alshurafat Raed Hendawi Abdallah Bader Alzoubi Hamzeh Al Amosh |
| author_facet | Firas N. Dahmash Hashem Alshurafat Raed Hendawi Abdallah Bader Alzoubi Hamzeh Al Amosh |
| author_sort | Firas N. Dahmash |
| collection | DOAJ |
| description | The aim of this study was to investigate the effect of the retention per share compared to the dividend per share by modeling the firm’s market value as a function of the retention per share and the dividend per share for all firms in the Jordanian context using unbalanced panel data analysis for a sample of 2281 firm years covering the period from 2010 to 2021. The results of the pooled sample indicated a strong positive significant effect for dividends per share. However, the retention per share indicated a negative significant effect on the firm’s market value. The other robustness analysis for the two sub-samples and the financial and non-financial sub-samples indicated the same results, consistent with the pooled sample for the two main explanatory variables. |
| first_indexed | 2024-03-11T21:28:42Z |
| format | Article |
| id | doaj.art-57eee772b9ae4e228a72d4cff48862c0 |
| institution | Directory Open Access Journal |
| issn | 2227-7072 |
| language | English |
| last_indexed | 2025-03-22T03:20:55Z |
| publishDate | 2023-07-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | International Journal of Financial Studies |
| spelling | doaj.art-57eee772b9ae4e228a72d4cff48862c02024-04-29T18:27:03ZengMDPI AGInternational Journal of Financial Studies2227-70722023-07-011138910.3390/ijfs11030089The Retained Earnings Effect on the Firm’s Market Value: Evidence from JordanFiras N. Dahmash0Hashem Alshurafat1Raed Hendawi2Abdallah Bader Alzoubi3Hamzeh Al Amosh4Department of Accounting, Business School, The Hashemite University, P.O. Box 330127, Zarqa 13133, JordanDepartment of Accounting, Business School, The Hashemite University, P.O. Box 330127, Zarqa 13133, JordanFaculty of Economics and Administrative Sciences, Yarmouk University, Irbid 21163, JordanDepartment of Accounting, Business School, The Hashemite University, P.O. Box 330127, Zarqa 13133, JordanMinistry of Education and Higher Education, Doha 35111, QatarThe aim of this study was to investigate the effect of the retention per share compared to the dividend per share by modeling the firm’s market value as a function of the retention per share and the dividend per share for all firms in the Jordanian context using unbalanced panel data analysis for a sample of 2281 firm years covering the period from 2010 to 2021. The results of the pooled sample indicated a strong positive significant effect for dividends per share. However, the retention per share indicated a negative significant effect on the firm’s market value. The other robustness analysis for the two sub-samples and the financial and non-financial sub-samples indicated the same results, consistent with the pooled sample for the two main explanatory variables.https://www.mdpi.com/2227-7072/11/3/89retention per sharedividend per shareemerging marketsJordan |
| spellingShingle | Firas N. Dahmash Hashem Alshurafat Raed Hendawi Abdallah Bader Alzoubi Hamzeh Al Amosh The Retained Earnings Effect on the Firm’s Market Value: Evidence from Jordan International Journal of Financial Studies retention per share dividend per share emerging markets Jordan |
| title | The Retained Earnings Effect on the Firm’s Market Value: Evidence from Jordan |
| title_full | The Retained Earnings Effect on the Firm’s Market Value: Evidence from Jordan |
| title_fullStr | The Retained Earnings Effect on the Firm’s Market Value: Evidence from Jordan |
| title_full_unstemmed | The Retained Earnings Effect on the Firm’s Market Value: Evidence from Jordan |
| title_short | The Retained Earnings Effect on the Firm’s Market Value: Evidence from Jordan |
| title_sort | retained earnings effect on the firm s market value evidence from jordan |
| topic | retention per share dividend per share emerging markets Jordan |
| url | https://www.mdpi.com/2227-7072/11/3/89 |
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