Investigation of the Effect of Investment Opportunities, Financial Resources, and Tax on Dividend Payout Policy in Listed Companies in Tehran Stock Exchange
Quarterly Journal of Securities Exchange

Quarterly Journal of Securities Exchange

Investigation of the Effect of Investment Opportunities, Financial Resources, and Tax on Dividend Payout Policy in Listed Companies in Tehran Stock Exchange

Authors
Mehdi Arab Salehi
Hasanali Akhlagi
Abstract
Different factors affect the firm’s dividend payout policy. A valuable amount of research has been conducted to investigate this effect by applying different variables such as firm’s size, profitability, growth opportunities and liquidity. The current study aims to examine how dividend payout policy is influenced by investment opportunities, financial resources and tax in Listed Companies in Tehran Stock Exchange during 2002 - 2009.The sample includes 123 companies and analyzed via panel data approach. The results show that there is significant and negative correlation between investment opportunities and dividend payout policy. In addition, there is a negative relationship between the financial leverage and external financing with dividend payout policy and a positive relationship between debt maturity dividend payout policies. The results are not the same in different industries.
Keywords
Dividend Payout Policy
Investment Opportunities
Financial Resources
Tax.