Studying the Relationship between Dividend Policy and Future Profits of Companies Listed On Tehran Stock Exchange

摘要

Background and Objective: The aim of this paper is to provide some evidence inresponse to this question “why some companies payout more stock cash dividendscomparing to other companies?” This question has attracted less attention to itself sofar, because previous empirical studies have generally been conducted by focus onchanges in cash dividend stocks not on stock dividend. In fact previous studies havemore answered this question that “why companies change their stock cash dividends?”So many of the previous empirical studies have studied the effective factors on thecompany decision regarding distribution or non-distribution of stock cash dividends,but in these studies the factors effective on decisions regarding determination of stockcash dividends to be distributed by companies have not been studied. In this paper wewill study the relationship between dividends policy and future profits of companieslisted on Tehran Stock Exchange. Results: The obtained results indicate that nosignificant relationship (p<0.05) exists between future profits and stock cash dividendsof companies and also there is a significant relationship (p<0.05) between retainedearnings to equity of companies to dividends (the amount of dividends paid by them)ratio and a significant relationship (p<0.05) has been observed between investmentopportunities of companies and the amount of dividends paid by them.