Alaa Adden Abuhommous, Mousa Almanasser
In this research we aim to examine the partial adjustment model of the dividend policy for firms listed in one of the largest financial markets in the world. We use data from U.S publicly listed firms for the period from 1997 to 2017 and applies a panel data analysis. we find that that the U.S listed firms change their current payout ratio towards a long-run optimal payout ratio, also we find that the earnings is not affecting the dividend payout ratio, which indicates that the independence of dividend policy from dividend.