Abstract: “This study aimed at investigating the effect of cash and stock dividends taking into consideration the control variables on Tobin’s Q in Jordanian commercial banks listed on Amman Stock Exchange. To achieve this objective, the study depended on financial reports published in stock exchange market for (16) Jordanian commercial banks during the period from 2009 to 2015, and used multiple and stepwise regression to test study hypotheses. The results of the study indicate that there is a significant and positive effect of cash and stock dividends on Tobin’s Q, and this effect in the favor of cash dividends over stock dividends on Tobin’s Q in Jordanian commercial banks.”

Keywords: dividends, stock dividends, Tobin’s Q, Jordanian commercial banks