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 , علی اصغری ²

1 - مسئول مکاتبات
2 - ندارد

Received: 2011-04-28 Accepted : 2011-06-24 Published : 2011-06-22

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