1- Investigation of Stock Market Liquidity and Banks Dividend Policy in Stock Market of Iran

Mohhamad Ali Ghazi*1, Hesam Moshtael Arani2, Hossein Ghafari3, Hossein Nobakht4 - 6880

International Journal of Scientific Management and Development, January 2016, Vol. 4, No. 1, pp: 1-6

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Abstract

Making decision on the payment of dividends is one of the important decisions that the banks listed on Tehran Stock Exchange are facing. Policy of banks listed on Tehran Stock Exchange on dividends is the factors that affect their value. Dividend profit is known to adhesion properties. Bank listed on the Stock Exchange in Tehran that reduce their dividends, usually encounter with a sharp decline in its value. Therefore, this research seeks to answer the question whether these factors affect the payment of dividend profit and what is the extent of these effects. The result of this research is shown that bank liquidity has significant negative effects on the bank's dividend profit. So, the first hypothesis that "there is a significant relationship between bank liquidity and dividend policy" cannot be excluded. Also growth opportunity of Bank (shown by the ratio of market value to book value) has a significant positive impact on the bank's dividend profit. So, the second hypothesis that that "there is a significant correlation between growth opportunities and banks intention on dividend” cannot be excluded. AndAccording to estimated results, the size of the Bank has no significant effects on bank dividend profit. So, third hypothesis that "there is a significant correlation between the size of the bank and dividend policy” is rejected. According to estimated results, the volume of profit in bank has a significant positive impact on the bank's dividend profit. So, fourth hypothesis that "there is a significant correlation between the profitability of the bank and dividend policy" cannot be excluded.

Keywords: Stock Market, payment of dividends, Banks Dividend Policy.

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