Dividend policy determines financial success for companies in emerging markets.
The study looked at how a company's dividend policy affects its financial performance in emerging countries. They analyzed data from 92 companies on the Amman Stock Exchange from 2015 to 2019. The results showed that dividend yield, dividend pay-out ratio, and firm size have a strong impact on financial performance. However, leverage ratio was found to have a negative effect on return on assets and asset turnover. Current ratio did not show a significant relationship with financial performance. In conclusion, the study found that a company's dividend policy plays a significant role in determining its financial performance.