Investigation Effect of Financial Reporting Quality on Impact of Dividend on Investment Decisions

Subject Areas : Financial Knowledge of Securities Analysis

Mahdi Arabsalehi ¹ , Ahmad Googerdchian ² , Majid Hashemi ³

1 - استادیار گروه حسابداری، دانشکده علوم اداری واقتصاد، دانشگاه اصفهان
2 - استادیار گروه اقتصاد، دانشکده علوم اداری واقتصاد، دانشگاه اصفهان
3 - کارشناسی ارشد حسابداری، دانشکده علوم اداری واقتصاد، دانشگاه اصفهان

Received: 2014-09-23 Accepted : 2014-11-11 Published : 2015-06-22

Keywords: investment decisions, dividend, financial reporting quality,

Abstract :

In recent years, dividend policy, as a factor of influencing decision investment, drawlots of attention in financial literature. Many economic decisions are made based oninformation, which is taken from the accounting information systems. Due to the qualityof information provided to users is necessary and increasing quality of data can be moreefficient investment copmanneis and to maintain and develop their resousces. The aim ofthis study is the investigation effect of financial reporting quality on impact of dividendon investment decisions. Then, the impact of financial reporting quality on thisrelationship has been investigated. Also for evaluating the financial reporting quality, theworking capital accruals quality model was used. Target sample includes 109 of listedcompanies in Tehran Stock Exchange(TSE) during 1385-1391.To analyze the data andhypothesis testing a multiple regression model based on compound data was used. Theresults of the study show that dividend have negative and significant effect on investmentdecisions. Also financial reporting quality mitigates the impact of dividend on investmentdecisions