چکیده:
The present study is going to investigate about the effect of earnings quality on cash dividend within a sample of 150 firms enlisted in Tehran Stock Exchange during the 8 years period of time between 2006 and 2013 that has been chosen by using a simple random method. The research method is correlation type and it has used a binary logistic regression model. Results have shown that there has been a meaningful relationship between earnings quality and cash dividend. Also the research results showed that variables such as operating cash flows, firm size, debt ratio, and the ratio of earnings to asset have had a meaningful relationship with cash dividend. From among the variables above, the operating cash flow to total assets ratio has had the strongest relationship with cash dividend. After that, earnings quality has had the highest relationship with cash dividend. This shows that the sample firms first report the dividend through earnings management and then pay. Also the evidences showed that the higher ratio of earning to assets would result in higher probability of cash dividend. This ratio shows the efficiency and performance of management in using firm's assets. In other words, it can be claimed that whenever management's performance in using assets improves, cash dividend would increase. The research evidences show that the greater amount of firm size will result in increased cash dividend. This shows that big companies have more capability in cash dividend than small companies. Also the present research results show that whenever the debt ratio increases the probability of cash dividend is reduced.
خلاصه ماشینی:
The effect of earnings quality on cash dividend of listed firms in Tehran Stock Exchange Roohollah Ghadimifardzanjani1 and Khosro Faghani Makrani2 1MA student of financial management, Department of Accounting, Sari Branch Islamic Azad University, Sari , Iran E-mail: roohollah.
com 2Department of Accounting, assistant professor, Sari Branch Islamic Azad University, Sari , Iran *Corresponding author’s: Khosro Faghani Makrani ABSTRACT The present study is going to investigate about the effect of earnings quality on cash dividend within a sample of 150 firms enlisted in Tehran Stock Exchange during the 8 years period of time between2006 and 2013 that has been chosen by using a simple random method.
Also the research results showed that variables such as operating cash flows, firm size, debt ratio, and the ratio of earnings toasset have had a meaningful relationship with cash dividend.
Also research results showed a meaningful relationship between the criterion of the existence of extraordinary items as earning quality index and the amount of dividends payouts in firms enlisted in Tehran Stock Exchange.
In this research control variables are: cash flows resulting from operations, the ratio of earning to total assets (return on assets), debt ratio, and firm size.
035 Number of observations 1378 1378 Earning management Pearson's correlation coefficient 1 Meaningfulness level Number of observations 1378 Conclusion and suggestions The research findings showed that the effective factors in cash dividends are: earning quality, firm size, earning to asset ratio, operating cash flow to asset ratio, and debt ratio.