The Effect of Cash Dividend on Future Share Prices of Financial Institutions Listed on Tehran Stock Exchange (2007 - 2012)

Abstract

The aim of the present study is to explore the impact of cash dividend on future share prices of financial institutions listed on Tehran Stock Exchange (timeframe of 2007 - 2012) and for this purpose a number of 21 financial institutions and banks listed on Tehran Stock Exchange were selected by using all count sampling method and were studied. For collecting the needed data for calculation of research variables, by using relevant specialized resources as well as audit reports and financial statements of financial institutions in research population the required data were collected and for this purpose reliable databases such as "RahAvardNovin" and "TadbirPardaz" were used. Finally, collected data were analyzed with the help of linear regression test and results indicated that payment and percentage of dividend have a significant and positive effect (p<0.01)  on future share price of financial institutions.