Research Article | OPEN ACCESS
Examining the Relationship between the Dividend Policy and Stock Prices in Companies Listed on Tehran Stock Exchange
Alireza Asadi
Department of Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran
Research Journal of Applied Sciences, Engineering and Technology 2013 22:4186-4191
Received: January 31, 2013 | Accepted: February 25, 2013 | Published: December 05, 2013
Abstract
This research is applied based on the objective and has the library type in terms of data collection because it is seeking to calculate and explain the relationship between the coefficients of each of the independent variables (dividend policies) with the stock price in Iran by using the econometric models. The document part in library studies and the information related to the research variables were applied in order to collect data necessary for the research and also the annual reports of stock were referred. The objective of this study is to study and examine the relationship between the dividend policy and stock prices in Iran during the years 2007 to 2011. The regression equation was determined based on the obtained results according to the type of relationship among the variables of this study. The normality of data distribution was determined through Kolmogorov-Smirnov test. The Analysis of Variance test was done in order to make sure of the relationship between the independent and dependent variables. Then the regression equation of research variables was calculated. Finally, Friedman test was done in order to rank the dependent and independent variables of model. According to the overall result of this study, there is a direct significant relationship between the variables of earnings per share and cash dividend. Moreover, ranking the variables also indicates the preference of earnings per share to the cash dividends. Finally, the regression model of relationship among the variables of research has been also presented.
Keywords:
Dividend, earnings per share, stock price,
Competing interests
The authors have no competing interests.
Open Access Policy
This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.
Copyright
The authors have no competing interests.
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ISSN (Online): 2040-7467
ISSN (Print): 2040-7459 |
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