Rezvan Hejazi; Soghra Fasihi; Behnam karamshahi
Abstract
Dividend policy is one of the most important topics in finance literature; because dividend is one of the greatest cash payouts and the most important decision facing managers. Managers have to decide that what amount of earnings must be divided and what amount of earning must be reinvested in the terms ...
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Dividend policy is one of the most important topics in finance literature; because dividend is one of the greatest cash payouts and the most important decision facing managers. Managers have to decide that what amount of earnings must be divided and what amount of earning must be reinvested in the terms of retained earnings. Dividend payouts affect institution’s ability to retain earnings for utilization in growth opportunities. It is obvious that managers have to consider maximizing shareholder wealth. Managers not only must decide about the amount of earnings to be reinvested, but also, they must notice the contingent effects of their decisions on stock price. So, managers have an essential role in setting dividend policy. This research investigates the effects of manager’s ability on dividend policy of Tehran Stock Exchange listed companies. This quasi-experimental research is in the field of positive accounting. We have applied Demerjian model for measuring manager’s ability and cash dividend for earning per share ratio for dividend policy. The sample consists of 82 firms from 2007 to 2015. The results show that manager ability and talents has a meaningful and positive relationship with dividend policy. Talented managers pay more divid
Gholamreza Soleimani Amiri; Narges Goodarzi
Volume 10, Issue 39 , October 2013, , Pages 83-104
Abstract
As the amount of dividend is one of the effective and final factors in investor decision making, dividend policy of companies that decides the amount of dividend, could play a very important role in making decisions. Dividend policy is reciprocally influenced by individual behavioral specifications. ...
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As the amount of dividend is one of the effective and final factors in investor decision making, dividend policy of companies that decides the amount of dividend, could play a very important role in making decisions. Dividend policy is reciprocally influenced by individual behavioral specifications. These specifications have an extensive coverage from which a few has been selected for this study. By measuring limits of patience and loss aversion of shareholders this study is trying to analyze their relations with companies’ dividend policy.The necessary data for trial assumptions, belonging to 77 companies for a period of 5 years between 1386-90, has been collected from Tehran stock exchange data base .the relation between variables have been examined by testing correlation coefficients and multiple regressions. Study shows there is no meaningful relation among percentage of dividend and stockholders patience, based on effecting date of dividend payment measurement and the amount of adjusted earnings per share measurement of companies accepted in Tehran stock exchange. On the other hand relation between dividend ratio percentage and measurement of companies profit growth is meaningful but to the contrary. So based on index of companies profit growth, a meaningful relation exists between payable dividend policy and loss aversion of shareholders. According to the market risk measurement, has no meaningful relation between loss aversion and dividend policy. Dividend Policy, Behavioral Finance, Patient Shareholders, Loss Averse Shareholders. Assistant