Tariq H. Dorgham

Type of the article: Research Article

Abstract
In emerging markets, understanding the dynamics of share price volatility is essential for corporate financial management and investor decision-making. The industrial sector often experiences price movements that may be influenced by companies’ financial policies. This research investigates the impact of dividend policy on share price volatility, with a focus on the moderating role of the debt ratio. The research draws on a balanced panel dataset of 64 Jordanian industrial firms listed on the Amman Stock Exchange during the period 2015–2023.
Using panel regression models, the findings reveal a statistically significant negative association between both dividend yield and payout ratio with share price volatility. Specifically, a 1% increase in dividend yield is associated with a 0.42% reduction in volatility (p < 0.01), while a 1-point increase in the payout ratio reduces volatility by approximately 0.31% (p < 0.05). In addition, the debt ratio significantly moderates these relationships, which reduces the stabilizing impact of dividends in highly leveraged firms. The high interaction term between dividend yield and debt ratio was confirmed by the positive interaction term between dividend yield and debt ratio. These findings highlight the importance of balanced dividend and leverage strategies in reducing stock market risk, which may improve market stability.

Acknowledgment(s)
This research was funded through the annual funding track by the Deanship of Scientific Research, from the vice presidency for graduate studies and scientific research, King Faisal University, Saudi Arabia [Grant No. KFU253003].

Type of the article: Research Article

Abstract
This paper examines the influence of reinsurance strategies and insurance liabilities on the performance and market valuation of Jordanian insurance firms. Using panel data from 2010 to 2023 and employing fixed-effects regression and mediation analysis, we test whether Excess Loss Installments (ELI) mediate these relationships. Based on a balanced panel of 16 listed Jordanian insurers over the period 2010–2023, the study applies SPSS, EViews, and SmartPLS to conduct fixed-effects regression and mediation analysis. The findings reveal that a higher reinsurers’ share is significantly associated with lower return on assets (ROA) (β = –0.18, p < 0.05), suggesting that excessive risk cession may erode underwriting profitability. In contrast, insurance contract liabilities have a strong positive impact on ROA (β = 0.29, p < 0.01) and firm value measured by Tobin’s Q (β = 0.32, p < 0.01), indicating that prudent technical reserve accumulation enhances financial strength and investor perception. Correlation analysis further revealed a negative association between reinsurance share and ROA (r = –0.21), while liabilities showed a moderate positive correlation with Tobin’s Q (r = 0.36). Mediation analysis showed that ELI does not play a statistically significant mediating role in the relationship between the main variables. In some models, ELI even had a minor negative indirect effect on firm value.
These findings emphasize the importance of optimizing reinsurance structures and liability management. For Jordanian insurers, effective risk transfer must be balanced against profitability goals. Regulators and firm managers should revisit the strategic use of advanced mechanisms like ELI to reduce inefficiencies and strengthen financial outcomes.

Acknowledgment(s)
This research was funded through the annual funding track by the Deanship of Scientific Research, from the vice presidency for graduate studies and scientific research, King Faisal University, Saudi Arabia [Grant no. KFU253235].

Type of the article: Research Article

Abstract
In the age of the knowledge economy, intellectual capital has become a key factor in the success of business organizations, especially in emerging countries. This study examines the relevance of intangible assets to firm development in Jordan’s industrial sector. The paper attempts to estimate the effect of intellectual capital on the growth of Jordanian industrial firms under the Value-Added Intellectual Coefficient (VAIC) model. The study used panel data on 64 industrial companies listed on the Amman Stock Exchange for the period 2014–2023. Intellectual capital efficiency is measured as VAIC and the components of intellectual capital efficiency (human, structural, and capital employed efficiencies). A panel regression model (fixed-effects, selected by the Hausman test) is estimated, and apart from the independent variable, firm size and liquidity are controlled. The study found a significant positive effect of intellectual capital efficiency on firm growth; that is, firms with a higher VAIC tend to have a higher annual growth. Quantitatively, every 1-point increase in VAIC is estimated to be associated with an increase in entity growth (on average) of several percentage points each year. Amongst the VAIC components, human capital efficiency stands out as the best contributor to growth (p < 0.01), whereas efficiency of the structural and capital employed contributes weakly and has statistically insignificant effects. The results confirm that boosting intellectual resources is the driving force behind superior growth for industrial firms. This emphasizes the need to invest in developing human capital and knowledge assets to maintain corporate growth in the Jordanian industrial sector.

Acknowledgment
This research was funded through the annual funding track by the Deanship of Scientific Research, from the vice presidency for graduate studies and scientific research, King Faisal University, Saudi Arabia [Grant No. KFU262433].