Document Type : Research Paper
Authors
Abstract
The purpose of firm's management is to maximize the firm’s value and as a result, to increase stockholder’s equity by providing more yields than their expectations. Basically, dividend is one of the most important sources of yields for the stockholders. The firm's managers recognized that their stockholders are seeking a stable policy in dividend payment because stable dividend policy reveals that the firm is financially stable and holds a lower business risk and increases stock market value. This paper investigates the relation between stable dividend policy and abnormal yields of firm's stock, And the difference of stable dividend policy among various industrial groups in Tehran exchange market on samples consist of 80 working company from 17 different industrial groups between the years 1379 to 1386. The main variable of this paper consist of stable dividend policy as an independent variable and abnormal yields of firm's stock as a dependent variable. Stable dividend policy was measured by Standard deviation of dividend and abnormal yields were measured by capital asset pricing model (CAPM).
The result of performed analysis indicate that there is a significant correlation between stable dividend policy and abnormal yields at the confidence level of 95% ,but the stable dividend policy do not vary among various industrial groups significantly.
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