Dividend Changes and Future Profitability in Listed Companies of Tehran Stock Exchange (TSE)
Quarterly Journal of Securities Exchange

Quarterly Journal of Securities Exchange

Dividend Changes and Future Profitability in Listed Companies of Tehran Stock Exchange (TSE)

Authors
Abstract
The subject of dividend policy is one of the most important issues. Company shareholders are interested to have cash dividend and use the dividend information as a basis for investing decisions. Information content of dividend hypothesis states that dividends convey information about future earnings. The present paper verified the relationship among dividend changes and future profitability in Tehran Stock Exchange during the period 2005-2012. The results showed that there is a significant relationship between dividend changes and current profitability, but there is no significant relationship between dividend changes and future profitability in Tehran Stock Exchange
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