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Tobit Regression Model to Determine the Dividend Yield in Iraq

In: New Approaches in Social and Humanistic Sciences

Author

Listed:
  • Meshal Harbi ODAH

    (The Bucharest University of Economic Studies, Department of Statistics and Econometrics, Muthanna University, Iraq)

  • Bahr KADHIM MOHAMMED

    (The Bucharest University of Economic Studies, Department of Statistics and Econometrics, University of AL-Qadisiyah, Iraq)

  • Ali SADIG MOHOMMED BAGER

    (The Bucharest University of Economic Studies, Department of Statistics and Econometrics, Muthanna University, Iraq)

Abstract

In the model of linear regression, the values of variables are known. The sample is limited by censoring limited restriction point where the approved variable is (Threshold point). Censoring occurs at the observation of the independent variables for the entire sample and the censored regression model is considered adequate when the data has to be censored from left at censored point equal to zero. After this, the Tobit regression model can be applied. In this paper we will identify the determinants of the Distribution of Profits between some competing companies on the Iraq Stock Exchange. The profit distribution in the shareholding companies determines the profits which are distributed to the shareholders and the part that is held. The retained profits are a major source of investment in the companies. Although expansion is desirable, profit distribution is as well. The study examines the determinants of the dividend yield, by using the Tobit regression model. The study will use a data set for some companies that traded on the Iraqi Stock Exchange between 2005 and 2015.The results of the analysis of tables use data on Market capitalization, Earnings per share, Market price to book value ratio and debt-equity ratio affect the distribution of profits paid, in some companies traded by Iraq Stock Exchange.

Suggested Citation

  • Meshal Harbi ODAH & Bahr KADHIM MOHAMMED & Ali SADIG MOHOMMED BAGER, 2018. "Tobit Regression Model to Determine the Dividend Yield in Iraq," Book chapters-LUMEN Proceedings, in: Veaceslav MANOLACHI & Cristian Mihail RUS & Svetlana RUSNAC (ed.), New Approaches in Social and Humanistic Sciences, edition 1, volume 3, chapter 30, pages 347-354, Editura Lumen.
    • Handle: RePEc:lum:prchap:03-30
    DOI: https://doi.org/10.18662/lumproc.nashs2017.30
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    References listed on IDEAS

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    1. Luc Renneboog & Peter G. Szilagyi, 2008. "Corporate Restructuring and Bondholder Wealth," European Financial Management, European Financial Management Association, vol. 14(4), pages 792-819, September.
    2. Amemiya, Takeshi, 1984. "Tobit models: A survey," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 3-61.
    3. Denis, David J. & Osobov, Igor, 2008. "Why do firms pay dividends? International evidence on the determinants of dividend policy," Journal of Financial Economics, Elsevier, vol. 89(1), pages 62-82, July.
    4. Pandey I M, 2001. "Corporate Dividend Policy and Behaviour: The Malaysian Evidence," IIMA Working Papers WP2001-11-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
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    More about this item

    Keywords

    Tobit regression model; dividend yield; Iraq Stock Exchange;
    All these keywords.

    JEL classification:

    • A3 - General Economics and Teaching - - Multisubject Collective Works
    • I2 - Health, Education, and Welfare - - Education
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General

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