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Figuring the Relationship between Cash Dividend Ratio and Stock Price Crash in Companies Accepted in Tehran Stock Exchange

Author

Listed:
  • Nadia Ahadnezhad

    (Accounting, Astara Azad University, Iran,)

  • Behnam Azadi

    (Doctorate of Economics, Faculty of Member, Ardebil Azad University, Iran,)

  • Peyman Imanzadeh

    (Accounting, Faculty of Member, Talesh Azad University, Iran.)

Abstract

The present survey aims at instigating the relationship between cash dividend ratio and the risk of stock price crash of companies accepted in Tehran stock exchange. A statistical sample of 131 companies accepted in Tehran Stock Exchange was surveyed for the period between 2010 and 2015. In this study, Levin-Lin-Chu test is utilized to examine the fixity of variables. Also, Panel method with random effects are used to assess the significance of data. The results obtained from the survey hypothesis test are expressive of the fact that there is a significant reverse relationship between cash dividend ratio and the risk of stock price fallout. In other words, with the increase of cash dividend ratio, the risk of falling out stock prices decreases.

Suggested Citation

  • Nadia Ahadnezhad & Behnam Azadi & Peyman Imanzadeh, 2018. "Figuring the Relationship between Cash Dividend Ratio and Stock Price Crash in Companies Accepted in Tehran Stock Exchange," International Journal of Economics and Financial Issues, International Journal of Economics and Financial Issues, vol. 8(4), pages 277-283.
    • Handle: RePEc:eco:journ1:2018-04-35
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    References listed on IDEAS

    as
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    3. Judson Caskey & Michelle Hanlon, 2013. "Dividend Policy at Firms Accused of Accounting Fraud," Contemporary Accounting Research, John Wiley & Sons, vol. 30(2), pages 818-850, June.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

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    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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