{"id":5323,"date":"2026-09-11T06:00:49","date_gmt":"2026-09-11T06:00:49","guid":{"rendered":"https:\/\/journal.ziu.edu.sy\/?p=5323"},"modified":"2026-09-11T06:00:51","modified_gmt":"2026-09-11T06:00:51","slug":"debt-and-dividend-policies-between-restraining-spending-and-hindering-growth-an-empirical-test-of-the-free-cash-flow-theory-in-jordanian-banks-2005-2024","status":"publish","type":"post","link":"https:\/\/journal.ziu.edu.sy\/?p=5323","title":{"rendered":"Debt and Dividend Policies between Restraining Spending and Hindering Growth: An Empirical Test of the Free Cash Flow Theory in Jordanian Banks (2005\u20132024)"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Abstract<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Objective:<\/strong>&nbsp;This study aims to examine the impact of both debt policy (DEBT) and dividend payout policy (DIV) in mitigating agency conflicts between management and shareholders, by measuring agency costs through two operational indicators: the asset utilization ratio (AC1) and the ratio of operating expenses to sales (AC2).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Design\/Methodology:<\/strong>&nbsp;The study employs a balanced panel dataset comprising 13 companies over the period 2005\u20132025, yielding a total of 273 firm-year observations. Models are estimated using Pooled Ordinary Least Squares (Pooled OLS), Random Effects (RE), and Fixed Effects (FE) estimators, with the optimal model selected based on the F-test, the LM-Breusch-Pagan test, and the Hausman test. Issues of heteroskedasticity and autocorrelation are addressed using White&#8217;s robust standard errors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Findings:<\/strong>&nbsp;The empirical results reveal a statistically significant negative relationship at the 1% and 5% levels between both debt and dividend payouts and operating expenses (AC2). This provides strong empirical support for the free cash flow hypothesis and the debt agency hypothesis, suggesting that both debt and dividend mechanisms effectively discipline management by curbing discretionary expenditures, reducing excess cash availability, and limiting wasteful investments. However, the results uncover a fundamental methodological paradox: both debt and dividend payouts exhibit a statistically significant negative association with asset efficiency (AC1). This implies that excessive reliance on either mechanism constrains the firm&#8217;s capacity to invest in productive assets, thereby impeding long-term revenue growth. Robustness checks (employing lagged variables, two-way fixed effects, and random effects specifications) confirm the high stability of the results, enhancing their credibility and supporting their generalizability to the banking sectors of comparable emerging markets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Keywords:&nbsp;Agency Costs, Debt Policy, Dividend Payouts.<\/strong><strong><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u0627\u0644\u0645\u0644\u062e\u0635:<\/strong> <strong><\/strong><strong><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u0627\u0644\u0647\u062f\u0641:<\/strong>&nbsp;\u062a\u0647\u062f\u0641 \u0627\u0644\u062f\u0631\u0627\u0633\u0629 \u0625\u0644\u0649 \u0627\u062e\u062a\u0628\u0627\u0631 \u0623\u062b\u0631 \u0643\u0644 \u0645\u0646 \u0633\u064a\u0627\u0633\u0629 \u0627\u0644\u0627\u0633\u062a\u062f\u0627\u0646\u0629 (DEBT) \u0648\u0633\u064a\u0627\u0633\u0629 \u0627\u0644\u062a\u0648\u0632\u064a\u0639\u0627\u062a \u0627\u0644\u0646\u0642\u062f\u064a\u0629 (DIV) &nbsp;\u0641\u064a \u0627\u0644\u062a\u062e\u0641\u064a\u0641 \u0645\u0646 \u062a\u0636\u0627\u0631\u0628 \u0627\u0644\u0645\u0635\u0627\u0644\u062d \u0628\u064a\u0646 \u0627\u0644\u0625\u062f\u0627\u0631\u0629 \u0648\u0627\u0644\u0645\u0633\u0627\u0647\u0645\u064a\u0646\u060c \u0648\u0630\u0644\u0643 \u0645\u0646 \u062e\u0644\u0627\u0644 \u0642\u064a\u0627\u0633 \u062a\u0643\u0627\u0644\u064a\u0641 \u0627\u0644\u0648\u0643\u0627\u0644\u0629 \u0628\u0645\u0624\u0634\u0631\u064a\u0646 \u062a\u0634\u063a\u064a\u0644\u064a\u064a\u0646 \u0647\u0645\u0627: \u0646\u0633\u0628\u0629 \u0627\u0644\u0627\u0646\u062a\u0641\u0627\u0639 \u0645\u0646 \u0627\u0644\u0627\u0635\u0648\u0644 (AC1) &nbsp;\u0646\u0633\u0628\u0629 \u0627\u0644\u0645\u0635\u0631\u0648\u0641\u0627\u062a \u0627\u0644\u062a\u0634\u063a\u064a\u0644\u064a\u0629 \u0625\u0644\u0649 \u0627\u0644\u0645\u0628\u064a\u0639\u0627\u062a (AC2)\u060c<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u0627\u0644\u062a\u0635\u0645\u064a\u0645 \u0648\u0627\u0644\u0645\u0646\u0647\u062c\u064a\u0629<\/strong><strong>:<\/strong>&nbsp;\u0627\u0639\u062a\u0645\u062f\u062a \u0627\u0644\u062f\u0631\u0627\u0633\u0629 \u0639\u0644\u0649 \u0628\u064a\u0627\u0646\u0627\u062a \u0628\u0627\u0646\u0644 \u0645\u062a\u0648\u0627\u0632\u0646\u0629 (Panel Data) \u0634\u0645\u0644\u062a 13 \u0634\u0631\u0643\u0629 \u062e\u0644\u0627\u0644 \u0627\u0644\u0641\u062a\u0631\u0629 2005\u20132025 \u0628\u0625\u062c\u0645\u0627\u0644\u064a 273 \u0645\u0634\u0627\u0647\u062f\u0629 \u0633\u0646\u0648\u064a\u0629. \u062a\u0645 \u062a\u0642\u062f\u064a\u0631 \u0627\u0644\u0646\u0645\u0627\u0630\u062c \u0628\u0627\u0633\u062a\u062e\u062f\u0627\u0645 \u0623\u0633\u0644\u0648\u0628 \u0627\u0644\u0645\u0631\u0628\u0639\u0627\u062a \u0627\u0644\u0635\u063a\u0631\u0649 \u0627\u0644\u0645\u064f\u062c\u0645\u0651\u0639 (Pooled OLS)\u060c \u0648\u0627\u0644\u062a\u0623\u062b\u064a\u0631\u0627\u062a \u0627\u0644\u0639\u0634\u0648\u0627\u0626\u064a\u0629 (RE)\u060c \u0648\u0627\u0644\u062a\u0623\u062b\u064a\u0631\u0627\u062a \u0627\u0644\u062b\u0627\u0628\u062a\u0629 (FE)\u060c \u0648\u062a\u0645 \u0627\u062e\u062a\u064a\u0627\u0631 \u0627\u0644\u0646\u0645\u0648\u0630\u062c \u0627\u0644\u0623\u0645\u062b\u0644 \u0628\u0646\u0627\u0621\u064b \u0639\u0644\u0649 \u0627\u062e\u062a\u0628\u0627\u0631\u0627\u062a F\u060c \u0648LM-Breusch-Pagan\u060c \u0648 Hausman. \u0643\u0645\u0627 \u062a\u0645 \u0639\u0644\u0627\u062c \u0645\u0634\u0643\u0644\u0627\u062a \u0627\u0644\u062a\u063a\u0627\u064a\u0631\u064a\u0629 \u0648\u0627\u0644\u0627\u0631\u062a\u0628\u0627\u0637 \u0627\u0644\u0630\u0627\u062a\u064a \u0628\u0627\u0633\u062a\u062e\u062f\u0627\u0645 \u0627\u0644\u0623\u062e\u0637\u0627\u0621 \u0627\u0644\u0645\u0639\u064a\u0627\u0631\u064a\u0629 \u0627\u0644\u0645\u062a\u064a\u0646\u0629 (Robust Standard Errors) \u0648\u0641\u0642 \u0637\u0631\u064a\u0642\u0629 White .<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u0627\u0644\u0646\u062a\u0627\u0626\u062c<\/strong><strong>:<\/strong> \u0623\u0638\u0647\u0631\u062a \u0646\u062a\u0627\u0626\u062c \u0627\u0644\u062f\u0631\u0627\u0633\u0629 \u0648\u062c\u0648\u062f \u0639\u0644\u0627\u0642\u0629 \u0633\u0644\u0628\u064a\u0629 \u0630\u0627\u062a \u062f\u0644\u0627\u0644\u0629 \u0625\u062d\u0635\u0627\u0626\u064a\u0629 \u0639\u0646\u062f \u0645\u0633\u062a\u0648\u064a\u0627\u062a 1% \u0648 5% \u0628\u064a\u0646 \u0643\u0644 \u0645\u0646 \u0627\u0644\u0627\u0633\u062a\u062f\u0627\u0646\u0629 \u0648\u0627\u0644\u062a\u0648\u0632\u064a\u0639\u0627\u062a \u0627\u0644\u0646\u0642\u062f\u064a\u0629 \u0648\u0628\u064a\u0646 \u0627\u0644\u0645\u0635\u0631\u0648\u0641\u0627\u062a \u0627\u0644\u062a\u0634\u063a\u064a\u0644\u064a\u0629 (AC2)\u060c \u0645\u0645\u0627 \u064a\u064f\u0639\u062f \u062f\u0644\u064a\u0644\u0627\u064b \u062a\u062c\u0631\u064a\u0628\u064a\u0627\u064b \u0642\u0648\u064a\u0627\u064b \u0639\u0644\u0649 \u0635\u062d\u0629 \u0641\u0631\u0636\u064a\u0629 \u0627\u0644\u062a\u062f\u0641\u0642 \u0627\u0644\u0646\u0642\u062f\u064a \u0627\u0644\u062d\u0631 \u0648\u0641\u0631\u0636\u064a\u0629 \u0648\u0643\u0627\u0644\u0629 \u0627\u0644\u062f\u064a\u0648\u0646\u060c \u062d\u064a\u062b \u062a\u0639\u0645\u0644 \u0643\u0644 \u0645\u0646 \u0623\u062f\u0627\u062a\u064a \u0627\u0644\u062f\u064a\u0646 \u0648\u0627\u0644\u062a\u0648\u0632\u064a\u0639\u0627\u062a \u0639\u0644\u0649 \u062a\u0636\u064a\u064a\u0642 \u0627\u0644\u062e\u0646\u0627\u0642 \u0639\u0644\u0649 \u0627\u0644\u0625\u062f\u0627\u0631\u0629\u060c \u0648\u062a\u062c\u0641\u064a\u0641 \u0645\u0635\u0627\u062f\u0631 \u0627\u0644\u0646\u0642\u062f \u0627\u0644\u0641\u0627\u0626\u0636\u060c \u0648\u0627\u0644\u062d\u062f \u0645\u0646 \u0627\u0644\u0625\u0646\u0641\u0627\u0642 \u0627\u0644\u0628\u062f\u062e\u064a \u0648\u0627\u0644\u0627\u0633\u062a\u062b\u0645\u0627\u0631\u0627\u062a \u063a\u064a\u0631 \u0627\u0644\u0645\u062c\u062f\u064a\u0629. \u063a\u064a\u0631 \u0623\u0646 \u0627\u0644\u0646\u062a\u0627\u0626\u062c \u0643\u0634\u0641\u062a \u0639\u0646 \u0645\u0641\u0627\u0631\u0642\u0629 \u0645\u0646\u0647\u062c\u064a\u0629 \u062c\u0648\u0647\u0631\u064a\u0629\u060c \u0625\u0630 \u0627\u0631\u062a\u0628\u0637\u062a \u0643\u0644 \u0645\u0646 \u0627\u0644\u0627\u0633\u062a\u062f\u0627\u0646\u0629 \u0648\u0627\u0644\u062a\u0648\u0632\u064a\u0639\u0627\u062a \u0627\u0644\u0646\u0642\u062f\u064a\u0629 \u0628\u0639\u0644\u0627\u0642\u0629 \u0633\u0644\u0628\u064a\u0629 \u0648\u0645\u0639\u0646\u0648\u064a\u0629 \u0645\u0639 \u0643\u0641\u0627\u0621\u0629 \u0627\u0644\u0623\u0635\u0648\u0644 (AC1)\u060c \u0645\u0645\u0627 \u064a\u0639\u0646\u064a \u0623\u0646 \u0627\u0644\u0625\u0641\u0631\u0627\u0637 \u0641\u064a \u0627\u0633\u062a\u062e\u062f\u0627\u0645 \u0647\u0627\u062a\u064a\u0646 \u0627\u0644\u0622\u0644\u064a\u062a\u064a\u0646 \u064a\u062d\u062f \u0645\u0646 \u0642\u062f\u0631\u0629 \u0627\u0644\u0634\u0631\u0643\u0629 \u0639\u0644\u0649 \u0627\u0644\u0627\u0633\u062a\u062b\u0645\u0627\u0631 \u0641\u064a \u0627\u0644\u0623\u0635\u0648\u0644 \u0627\u0644\u0625\u0646\u062a\u0627\u062c\u064a\u0629\u060c \u0648\u0628\u0627\u0644\u062a\u0627\u0644\u064a \u064a\u0639\u064a\u0642 \u0646\u0645\u0648 \u0627\u0644\u0627\u064a\u0631\u0627\u062f\u0627\u062a \u0637\u0648\u064a\u0644 \u0627\u0644\u0623\u062c\u0644. \u0643\u0645\u0627 \u0623\u0638\u0647\u0631\u062a \u0627\u062e\u062a\u0628\u0627\u0631\u0627\u062a \u0627\u0644\u0645\u062a\u0627\u0646\u0629 (\u0628\u0627\u0633\u062a\u062e\u062f\u0627\u0645 \u0627\u0644\u0645\u062a\u063a\u064a\u0631\u0627\u062a \u0627\u0644\u0645\u064f\u0628\u0637\u0623\u0629\u060c \u0648\u0646\u0645\u0648\u0630\u062c \u0627\u0644\u062a\u0623\u062b\u064a\u0631\u0627\u062a \u0627\u0644\u062b\u0627\u0628\u062a\u0629 \u062b\u0646\u0627\u0626\u064a\u0629 \u0627\u0644\u0627\u062a\u062c\u0627\u0647\u060c \u0648\u0646\u0645\u0648\u0630\u062c \u0627\u0644\u062a\u0623\u062b\u064a\u0631\u0627\u062a \u0627\u0644\u0639\u0634\u0648\u0627\u0626\u064a\u0629) \u0627\u0633\u062a\u0642\u0631\u0627\u0631\u0627\u064b \u0639\u0627\u0644\u064a\u0627\u064b \u0644\u0644\u0646\u062a\u0627\u0626\u062c\u060c \u0645\u0645\u0627 \u064a\u0639\u0632\u0632 \u062b\u0642\u062a\u0647\u0627 \u0648\u064a\u062c\u0639\u0644\u0647\u0627 \u0642\u0627\u0628\u0644\u0629 \u0644\u0644\u062a\u0639\u0645\u064a\u0645 \u0639\u0644\u0649 \u0642\u0637\u0627\u0639 \u0627\u0644\u0628\u0646\u0648\u0643 \u0641\u064a \u0627\u0644\u0623\u0633\u0648\u0627\u0642 \u0627\u0644\u0646\u0627\u0634\u0626\u0629 \u0627\u0644\u0645\u0645\u0627\u062b\u0644\u0629.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u0627\u0644\u0643\u0644\u0645\u0627\u062a \u0627\u0644\u0645\u0641\u062a\u0627\u062d\u064a\u0629<\/strong><strong>:&nbsp;<\/strong><strong>\u062a\u0643\u0627\u0644\u064a\u0641 \u0627\u0644\u0648\u0643\u0627\u0644\u0629\u060c \u0627\u0644\u0627\u0633\u062a\u062f\u0627\u0646\u0629\u060c \u062a\u0648\u0632\u064a\u0639\u0627\u062a \u0627\u0644\u0623\u0631\u0628\u0627\u062d.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">by:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u0637\u0627\u0647\u0631 \u0639\u0628\u062f \u0627\u0644\u0633\u0644\u0627\u0645 \u0639\u0644\u064a \u0631\u062c\u0628\u00b9<\/strong><strong>*<\/strong><br><strong>Taher Abdul Salam Ali Rajab\u00b9*<\/strong><strong>\u00b9 \u0623\u0633\u062a\u0627\u0630 \u0645\u0633\u0627\u0639\u062f\u060c \u0642\u0633\u0645 \u0627\u0644\u0645\u062d\u0627\u0633\u0628\u0629\u060c \u0643\u0644\u064a\u0629 \u0627\u0644\u0627\u0642\u062a\u0635\u0627\u062f \u0648\u0627\u0644\u0639\u0644\u0648\u0645 \u0627\u0644\u0633\u064a\u0627\u0633\u064a\u0629\u060c \u062c\u0627\u0645\u0639\u0629 \u0645\u0635\u0631\u0627\u062a\u0629\u060c \u0644\u064a\u0628\u064a\u0627.<br>\u0627\u0644\u0628\u0627\u062d\u062b \u0627\u0644\u0645\u0631\u0627\u0633\u0644: \u0637\u0627\u0647\u0631 \u0639\u0628\u062f \u0627\u0644\u0633\u0644\u0627\u0645 \u0639\u0644\u064a \u0631\u062c\u0628<br><br><\/strong><\/p>\n\r\n\t\t<div class=\"review_wrap\">\r\n\t\t\t<div id=\"review-box\" class=\"review-box review-bottom review-stars\">\r\n\t\t\t\t<div class=\"review-summary\">\r\n\t\t\t\t\t<div class=\"review-final-score\">\r\n\t\t\t\t\t\t<span title=\"\" class=\"post-large-rate stars-large\"><span style=\"width:0%\"><\/span><\/span>\r\n\t\t\t\t\t\t<h4><\/h4>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t\r\n\t\t\t\t<div class=\"review-short-summary\"><a href=\"https:\/\/drive.google.com\/file\/d\/1sNxlFQdcV8BlCBHZNK-y_eYFanJ3FBHz\/view?usp=drive_link\" class=\"taq-button taq-medium taq-square taq-flat\" style=\"background-color:#a0ce4e\" target=\"_blank\"><i class=\"fa fa-download\"><\/i><span class=\"button-text\">Download<\/span><\/a>\r\n\t\t\t\t<\/div>\r\n\t\t\t<\/div>\r\n\t\t\t\r\n\t\t\t<div class=\"user-rate-wrap\">\r\n\t\t\t\t<span class=\"user-rating-text\">\r\n\t\t\t\t\t<strong>\u062a\u0642\u064a\u064a\u0645 \u0627\u0644\u0645\u0633\u062a\u062e\u062f\u0645\u0648\u0646: <\/strong>\r\n\t\t\t\t\t<span class=\"taq-score\"><\/span>\r\n\t\t\t\t\t<small>\u0643\u0646 \u0623\u0648\u0644 \u0627\u0644\u0645\u0635\u0648\u062a\u0648\u0646 !<\/small>\r\n\t\t\t\t<\/span>\r\n\r\n\t\t\t\t<div data-rate=\"0\" data-id=\"5323\" class=\"user-rate taq-user-rate-active\">\r\n\t\t\t\t\t<span class=\"user-rate-image post-large-rate stars-large\">\r\n\t\t\t\t\t\t<span style=\"width:0%\"><\/span>\r\n\t\t\t\t\t<\/span>\r\n\t\t\t\t<\/div>\r\n\r\n\t\t\t\t<div class=\"taq-clear\"><\/div>\r\n\r\n\t\t\t<\/div>\r\n\t\t<\/div>\r\n\t<\/div>","protected":false},"excerpt":{"rendered":"<p>Abstract Objective:&nbsp;This study aims to examine the impact of both debt policy (DEBT) and dividend payout policy (DIV) in mitigating agency conflicts between management and shareholders, by measuring agency costs through two operational indicators: the asset utilization ratio (AC1) and the ratio of operating expenses to sales (AC2). Design\/Methodology:&nbsp;The study employs a balanced panel dataset &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[167],"tags":[],"class_list":["post-5323","post","type-post","status-publish","format-standard","","category-167"],"_links":{"self":[{"href":"https:\/\/journal.ziu.edu.sy\/index.php?rest_route=\/wp\/v2\/posts\/5323","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/journal.ziu.edu.sy\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/journal.ziu.edu.sy\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/journal.ziu.edu.sy\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/journal.ziu.edu.sy\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5323"}],"version-history":[{"count":1,"href":"https:\/\/journal.ziu.edu.sy\/index.php?rest_route=\/wp\/v2\/posts\/5323\/revisions"}],"predecessor-version":[{"id":5324,"href":"https:\/\/journal.ziu.edu.sy\/index.php?rest_route=\/wp\/v2\/posts\/5323\/revisions\/5324"}],"wp:attachment":[{"href":"https:\/\/journal.ziu.edu.sy\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5323"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/journal.ziu.edu.sy\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5323"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/journal.ziu.edu.sy\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5323"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}