The relationship between horizon of institutional investors and Information Content of unexpected dividends

Subject Areas : Financial engineering

Mahdi Moradi ¹ (Professor, Accounting Department, Ferdowsi University of Mashhad, Faculty of Economic Sciences)
elham parandeh ² (Graduate Student of Accounting, Islamic Azad University of Mashhad)
zakiyeh marandi ³ (Department of accounting, Islamic Azad University)

Received: 2017-05-18 Accepted : 2017-09-26 Published : 2017-12-22

Keywords: dividend unexpected, institutional investors, long-term horizon of institutional investors, short-term horizon of institutional investors,

Abstract :

The purpose of this study is to investigate the relationship between the horizon of institutional investors and information content of unexpected dividend earnings. This study is a descriptive-correlational study. In order to achieve the research goal, 86 companies were selected from among listed companies in Tehran Stock Exchange between 2011 and 2015. The present study includes three hypotheses that examine the relationship between the horizon of institutional investors in general and the perspective of long-term and short-term of institutional shareholders with unexpected dividend.To analyze the hypothesis using panel data regression analysis through software Spss20 and Eviews7. The findings showed that the horizon of institutional investors in general and the perspective of long-term and short-term of institutional shareholders have a Reverse  and significantly relationship on unexpected dividends as a measure of unexpected earnings information content. Therefore, improving horizon of institutional investors reduces the difference between profit and dividend forecast becomes true.