The Role of Investment Opportunities on the Relationship between Dividend Smoothing with Future Profitability and Future Company Returns

Subject Areas : Journal of Capital Market Analysis

Omid Jahanbakhsh ¹ , rahman saedi ² , Mohsen Dastgir ³

1 - Accounting, Humanities and Law, Azad Khorasgan, Isfahan, Iran
2 -
3 - گروه حسابداری، واحد اصفهان (خوراسگان)، دانشگاه آزاد اسلامی، اصفهان، ایران

Received: 2025-01-21 Accepted : 2025-03-16 Published : 2025-09-15

Keywords: Investment Opportunities, Dividend Smoothing, Profitability, Stock Returns,

Abstract :

One of the important information that is available to investors and they react to its changes is the profits reported by companies. Investors predict the future stock returns through these reports and examining the profit components. Considering the position of profit and return on shares in business units and the role they play in the relationship between investors and company managers, in the current research, the role of investment opportunities on the relationship between dividend smoothing and future profitability and future return of the company has been investigated. is In this regard, the data of 105 companies admitted to the Tehran Stock Exchange during the period of 2015 to 2022 were collected and analyzed. Multiple regression model was used to test the hypotheses. The results showed that the smoothing of profit sharing has a positive effect on future profitability. Also, the results showed that investment opportunities have a positive effect on the relationship between the smoothing of profit sharing and future profitability. In addition, the results showed that the smoothing of dividend distribution has a positive effect on future stock returns. Other results showed that investment opportunities have a positive effect on the relationship between dividend smoothing and future stock returns

References:

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