The effect of product market competition on dividend policy

Subject Areas :

ولی KHodadadi ¹ , جواد Nik kar ² , محسن Rashidi ³

1 - دانشیار گروه حسابداری دانشگاه شهید چمران اهواز
2 - کارشناس ارشد حسابداری
3 - کارشناس ارشد حسابداری

Received: 2015-05-06 Accepted : 2015-05-06 Published : 2014-12-22

Keywords:

Abstract :

 Competitive is defined as ability of the company to remain in the business market, protecting various company capitals, gain (return) capitals and guarantee the jobs at the future. According to the above definition can be stated that the competition has an important impact on the company's operations. On the other hand, studies in some countries show that dividend policy can be influenced by market competition. So, this study investigates the impact of different levels of competition on dividends policy. Accordingly, the survey required information the 120 companies listed in Tehran Stock Exchange and combined regression model was used to test the hypothesis. The results show that increasing product market competition, profits and dividend increases, too. Thus, firms due to competitive conditions and as a forced way to stay in the competition action distribute and pay cash dividend to the shareholders.