Does Size Favor Dividends or Retained Earnings?

Abstract

The relationship between dividend, retained earnings and stock returns is one of the debated topics addressed by the researchers; different theories used in order to examine empirically the relationship by using different models. This study collected the data of 85 companies (52 industrial and 33 services) for the period 2000-2014 and the results show that there is a significant relationship between dividend policy, retained earnings and share price taking into consideration that the size of the firm in Jordan affects the preference of investors significantly.