Tobit Regression Model to Determine the Dividend Yield in 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.