Partial - adjustment - models of devidend policy behaviour for industrial Jordanian firms

Abstract

This study examined the inter-temporal Dividend-Per-Share (DPS) behaviour. The estimated partialadjustment- models included Lintner's (1956), Darling's (1957) and Brittain's (1966) models. The results reported from the partial-adjustment-models indicated that Lintner's model was the best-fit model for Jordanian firms. Previous dividends and current earnings had the most influence on the DPS inter-temporal behaviour, indicating that Jordanian firms follow a persistent dividend policy. While dividends are persistent, Jordanian firms smooth dividends less than their counterparts in developed markets.