Payout Policy: An Empirical Test of the Catering Theory of Dividend in Tehran Stock Exchange (TSE)
Catering theory of dividend is based on the principle that managers balance dividend policy with investors’ varying demand for cash dividend. In this paper, catering theory of dividend in Tehran Stock Exchange (TSE) was tested with market-level and firm-level variables for 420 observation (7 years,...
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doaj-52a30b7a55fa4d5fbfdac4ae8a0cdee12020-11-24T21:05:42ZfasAlzahra Universityراهبرد مدیریت مالی2345-32142538-19622015-03-013112010.22051/jfm.2015.19571957Payout Policy: An Empirical Test of the Catering Theory of Dividend in Tehran Stock Exchange (TSE)fereydoon rahnamay roodposhti0shahram babalooyan1mehrdokht mozaffari2islamic azad university of tehranislamic azad university of tehranislamic azad university of tehranCatering theory of dividend is based on the principle that managers balance dividend policy with investors’ varying demand for cash dividend. In this paper, catering theory of dividend in Tehran Stock Exchange (TSE) was tested with market-level and firm-level variables for 420 observation (7 years, 60 firms) during the period (2007-2013) running binary logistic regression. The findings of the study showed that investors` demand for pay or not to pay dividends and for increase or decrease of dividends has positive and significant effect on managers` decision regarding dividend policy. These findings are in line with the behavioral corporate finance flow that regards managers` performance as rational responses to the irrational investors’ behavior.http://jfm.alzahra.ac.ir/article_1957_0899080fc27af5091ea369f3996e99b1.pdfPayout policyCateringDividend premiumBehavioral corporatefinance |
collection |
DOAJ |
language |
fas |
format |
Article |
sources |
DOAJ |
author |
fereydoon rahnamay roodposhti shahram babalooyan mehrdokht mozaffari |
spellingShingle |
fereydoon rahnamay roodposhti shahram babalooyan mehrdokht mozaffari Payout Policy: An Empirical Test of the Catering Theory of Dividend in Tehran Stock Exchange (TSE) راهبرد مدیریت مالی Payout policy Catering Dividend premium Behavioral corporatefinance |
author_facet |
fereydoon rahnamay roodposhti shahram babalooyan mehrdokht mozaffari |
author_sort |
fereydoon rahnamay roodposhti |
title |
Payout Policy: An Empirical Test of the Catering Theory of Dividend in Tehran Stock Exchange (TSE) |
title_short |
Payout Policy: An Empirical Test of the Catering Theory of Dividend in Tehran Stock Exchange (TSE) |
title_full |
Payout Policy: An Empirical Test of the Catering Theory of Dividend in Tehran Stock Exchange (TSE) |
title_fullStr |
Payout Policy: An Empirical Test of the Catering Theory of Dividend in Tehran Stock Exchange (TSE) |
title_full_unstemmed |
Payout Policy: An Empirical Test of the Catering Theory of Dividend in Tehran Stock Exchange (TSE) |
title_sort |
payout policy: an empirical test of the catering theory of dividend in tehran stock exchange (tse) |
publisher |
Alzahra University |
series |
راهبرد مدیریت مالی |
issn |
2345-3214 2538-1962 |
publishDate |
2015-03-01 |
description |
Catering theory of dividend is based on the principle that managers balance dividend policy with investors’ varying demand for cash dividend. In this paper, catering theory of dividend in Tehran Stock Exchange (TSE) was tested with market-level and firm-level variables for 420 observation (7 years, 60 firms) during the period (2007-2013) running binary logistic regression. The findings of the study showed that investors` demand for pay or not to pay dividends and for increase or decrease of dividends has positive and significant effect on managers` decision regarding dividend policy. These findings are in line with the behavioral corporate finance flow that regards managers` performance as rational responses to the irrational investors’ behavior. |
topic |
Payout policy Catering Dividend premium Behavioral corporatefinance |
url |
http://jfm.alzahra.ac.ir/article_1957_0899080fc27af5091ea369f3996e99b1.pdf |
work_keys_str_mv |
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1716767807493898240 |