An Investigation of Leverage Effect on Dividend Policy in Companies Listed on the Tehran Stock Exchange
Subject Areas : Financial Knowledge of Securities Analysis
بهمن بنی مهد
1
(
مسئول مکاتبات
)
علی اصغری
2
(
ندارد
)
Keywords: financial leverage, dividend policy, size and operating cash flow,
Abstract :
In this paper, we have examined relation between financial leverage effect and dividend policy over a 7- period in 66 firms in Tehran Stock Exchange. We have found that there is no relation between financial leverage and dividend policy . But, there is a positive relation between firm size and operating cash flow with dividend policy in study sample. The results of this study show that in emerging markets such as Iranian capital market , we could not find any agency theory implications on dividend policy