The relationship between intellectual capital efficiency and firms’ dividend policy: Do CEO characteristics matter?

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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.

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    • Table 1. Descriptive statistics
    • Table 2. Pearson correlation matrix
    • Table 3. Regression results
    • Conceptualization
      Mahmoud Odat, Ruba Bsoul
    • Data curation
      Mahmoud Odat, Ruba Bsoul
    • Formal Analysis
      Mahmoud Odat, Ruba Bsoul
    • Funding acquisition
      Mahmoud Odat, Ruba Bsoul
    • Investigation
      Mahmoud Odat, Ruba Bsoul
    • Methodology
      Mahmoud Odat, Ruba Bsoul
    • Project administration
      Mahmoud Odat, Ruba Bsoul
    • Resources
      Mahmoud Odat, Ruba Bsoul
    • Software
      Mahmoud Odat, Ruba Bsoul
    • Supervision
      Mahmoud Odat, Ruba Bsoul
    • Validation
      Mahmoud Odat, Ruba Bsoul
    • Visualization
      Mahmoud Odat, Ruba Bsoul
    • Writing – original draft
      Mahmoud Odat, Ruba Bsoul
    • Writing – review & editing
      Mahmoud Odat, Ruba Bsoul