خلاصة:
A substantial theoretical literature، suggests that corporate dividend policy is designed to reveal earnings prospects to investors. A Literature contends that dividend changes disclose information about a firm's permanent income. Dividend signaling models make the more specific predictions that firms raise dividends either prior to earnings increases or to reveal that an increase is permanent. Research looking for evidence of signaling provides mixed evidence at best. We investigated firm's performance after dividend changes by selected sample includes 89 firms listed on Tehran Stock exchange during the 1377-1386. Our findings provide evidence that shows dividend decreases disclose information about a firm's future earnings but inconsistent with signaling، dividend increases don’t have information content about future earnings.
ملخص الجهاز:
Since managers possess more information regarding the future profitability of the company compared to external investors, by increasing dividends, they can provide better signaling of the business unit's future prospects, which normally results in experiencing a higher stock price in the market.
[17] Therefore, because external investors have less information about the future profitability of the company, they consider the dividend performance as a signal of expected future cash flows, as the stock price in the market reacts quickly to decisions related to the company's dividend distribution.
The empirical test of the cash signaling hypothesis in the Tehran Stock Exchange confirms the relationship between cash dividends and the future profitability of the company[2].
1. Result of Research Hypothesis Testing - Linear Model with Control Variable In order to consider the interaction effect of dividend decisions and the rate of return, model (2) has been estimated: (Refer to the page image) As observed in Figure 3, the R2 value has increased, which indicates that the interaction effect of dividend decisions and the rate of return is influential on future earnings changes, but this effect was negligible; furthermore, the coefficients related to the control variables l-trXCPD and l-tr XCND are not significantly different from zero.
Result of Research Hypothesis Testing - Non-linear Model (Refer to the page image)&%00311MHPG003G% The relationship between Return on Assets (ROA) in the year following the dividend announcement and changes in dividends in the presence of control variables EZIS and BTM is also examined, and the result is presented in Figure 5.
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