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The Relationship between Ownership and Dividend Policy: Evidence from Tehran Stock Exchange Using the Propensity Score Matching Estimator

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Listed:
  • Mahdi Filsaraei

    (Islamic Azad University, Khorasgan (Isfahan) Branch, Isfahan, Iran,)

  • Alireza Zarei

    (Islamic Azad University, Khorasgan (Isfahan) Branch, Isfahan, Iran)

Abstract

In this study, a new aspect of the relationship of ownership (the endogenous relationship) and dividend policy has been investigated. For this purpose, data of 2080 firm-year were used in the period of 2002-2016. In this study, the effect of ownership on dividend policy was estimated as exogenous once and endogenous once again. The results were analyzed through software R by using ordinary data and matched data by propensity score matching (PSM). In the both methods, the simple logistic regression and logistic panel model was fitted and Akaike's criterion was used for comparing the methods. It was observed that the P value of institutional and corporate investors is

Suggested Citation

  • Mahdi Filsaraei & Alireza Zarei, 2017. "The Relationship between Ownership and Dividend Policy: Evidence from Tehran Stock Exchange Using the Propensity Score Matching Estimator," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 664-671.
    • Handle: RePEc:eco:journ1:2017-02-86
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    References listed on IDEAS

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    More about this item

    Keywords

    Dividend Policy; The Endogeneity of Ownership; Concentrated Ownership; Propensity Score Matching;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy

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