Hossein Etemadi; Banani Mahdi
Volume 5, Issue 19 , October 2007, , Pages 73-91
Abstract
One aim of investors in the purchasing of company stocks is using from the dividends. Investors enjoy from the cash flow and want to receive assure for particular amounts in the determine time, on the other hand, dividends payout can indicate the financial healthy and suitable condition of company for ...
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One aim of investors in the purchasing of company stocks is using from the dividends. Investors enjoy from the cash flow and want to receive assure for particular amounts in the determine time, on the other hand, dividends payout can indicate the financial healthy and suitable condition of company for investors. So companies can use this weapon in their sharing price and also guiding the investors. The aim of this research is the consideration of the payment dividends balance dependent with the company operation of two assessment equivalent including the economic value added and return on assets. In order to consider the subject of 88 companies select that was necessary to account the research variables and the suitable statistic testing perform like the correlation tests, This research results is that the dividends has weak cohesion with economic value added and it has no cohesion relation with return on assets.
Therefore, we can conclude that payment or nonpayment of dividends cannot indicate the suitable or unsuitable operation of company and increasing or decreasing of dividends also should not be indicate for fairness or unfairness investment in the company ,so utilization of dividends don't recommend to take the investment and credit decisions by investors and creditors.
