Investigating the relationship between dividend policy, financial leverage and profitability in companies listed on the Tehran Stock Exchange.

Document Type : Original Article

Authors
moein nazari 1
ali esmaelzadeh 2
Negar Khosravipour 3
1 Ph. D candidate, Department of Accounting, Central Tehran branch Islamic Azad University Tehran, Iran.
2 Associate Professor, Department of Accounting, Central Tehran branch Islamic Azad University Tehran, Iran.
3 Assistant Professor, Department of Accounting, Central Tehran branch Islamic Azad University Tehran, Iran.
10.30495/jik.2025.23546
Abstract
The purpose of this study is to investigate the effects of dividends, financial leverage and profitability on each other in terms of dynamic and static models that are the result of combined data of 144 companies in the years 2013-2018. According to the dynamic model, dividends and profitability of the previous period affect the same variables of the current period. Also, the dividends in the previous one and two financial periods affect the dividends in the current period. Based on dynamic and static models, profitability does not affect financial leverage, but dividends payable have a significant negative effect on financial leverage. Dividends paid also have a positive effect on profitability. Only the static model shows the significant positive effect of financial leverage on the company's profitability. Findings of both models show that there is no significant effect of profitability on dividends. Regarding the effect of financial leverage on dividends, static dynamic models show conflicting results, so that the dynamic model shows a significant negative impact and the static model shows a significant positive effect of financial leverage on dividends.
Keywords
Profitability
Dividend Policy
Leverage
Generalized Method of Moments
Ordinary Least Squares
  • جوکار, حسین, دانشی, وحید, بهارمقدم, مهدی. (1398). بررسی وجود نقطۀ بحرانی تورم و سطح بهینۀ مدیریت سرمایه در گردش و تأثیر آن بر عملکرد مالی بنگاههای اقتصادی. پژوهش های حسابداری مالی, 11(3), 50-19
  • حیدری کیا، مریم؛ حسین زاده، مصطفی.(1398). تاثیر ساختار سرمایه و عوامل کلان اقتصادی بر عملکرد مالی و ارزش شرکت‌های پذیرفته شده در بورس اوراق بهادار تهران، پژوهشنامه بازرگانی،دوره23،شماره90،صص 33-54.
  • رضایی, فرزین, پیری, عبداله. (1390). تاثیر ساختار مالکیت، ساختار سرمایه و نقدینگی بر ارزش بازار شرکت ها. پژوهش های حسابداری مالی و حسابرسی, 3(11),. 174-155
  • ستایش, محمد حسین, ابراهیمی, فهیمه. (1400). رابطه جانشینی میزان استفاده از اهرم مالی در ساختار سرمایه و اجتناب مالیاتی، پژوهش های حسابداری مالی و حسابرسی 13(49),، 72-53
  • طاوسی, جمال, کشته‌گر, عبدالعلی, کمالیان, امین رضا. (1398). رابطه بین اهرم مالی، رشد شرکت و قدرت مالی در شرکتهای پذیرفته شده در بورس اوراق بهادار تهران. فصلنامه مدیریت توسعه و تحول, 1398(39),. 37-42
  • قدرتی زوارم ع., نوروزی م., ماهری سردشت ز. (1400). بررسی تأثیر عدم تقارن اطلاعاتی بر ساختار سرمایه با تأکید بر نقش تعدیل کننده ریسک تجاری. فصلنامه علمی تخصصی رویکردهای پژوهشی نوین در مدیریت و حسابداری، 5 (78)، 72-86
  • مشهدی علی پوری, وحید. (1400). ارتباط بین قرارداد بدهی و سرعت تعدیل ساختار سرمایه. چشم انداز حسابداری و مدیریت, 4(52),.28-44
  • محمدی رمضانی، محمدرضا و رجبی خرمدره، لیلا،1397،بررسی رابطه بین اهرم مالی و بازده سهام با تاکید بر نوع صنعت و چرخه عمر در شرکت های پذیرفته شده در بورس اوراق بهادار تهران،پنجمین همایش بین المللی نوآوری، توسعه و کسب و کار،تهران،https://civilica.com/doc/773216
  • محمدی, محمد, طالاری, شهلا, ملکی اسکویی, ملک تاج, خسروی, زهرا. (1398). ارزیابی رابطه هزینه نمایندگی و سیاست های تقسیم سود و کارایی سرمایه گذاری در شرکتهای پذیرفته شده در بورس اوراق بهادر تهران. چشم انداز حسابداری و مدیریت, 2(16), 107-87
  • مرادزاده فرد، مهدی؛ محرم زاده، ناهید.(1396). بررسی آزمون تئوری علامت دهی و تئوری سودهای پیشین در رابطه میان تقسیم سود و سودآوری آتی، دانش حسابداری مالی،دوره4،شماره4، صص 101-118.
  • ناظمی, حمیدرضا, عبدلی, محمدرضا. (1398). رابطه بازده با سود و جریانات نقدی قبل و بعد از تجدید ارائه صورت‌های مالی. پژوهش های حسابداری مالی و حسابرسی, 11(41), 92-69.
  • هوشمند نعمت آبادی, احمد, درخشان مهر, آرش. (1399). تاثیر ارتباطات سیاسی بر رابطه بین کیفیت اقلام تعهدی و سیاست تقسیم سود. چشم انداز حسابداری و مدیریت, 3(21),. 32-27
  • Abdulkadir, A. R, Abdulrashid, B.(2019). Is Dividend Payment of any Influence to Corporate Performance in Nigeria? Empirical Evidence from Panel Cointegration, International Journal of Economics and Financial Issues, 9(2), 48-58.
  • Adam, Klaus; Merkel, Sebastian (2019) Stock price cycles and business cycles, ECB Working Paper, No. 2316, ISBN 978-92-899-3885-3, European Central Bank (ECB), Frankfurt a. M., http://dx.doi.org/10.2866/883978
  • Akhtar, H., Chishtie, M. A., & Shah, S. Z. A. (2020). Reverse Causality of Dividend Policy and Foreign Investment: Evidence from Pakistan. In IEIS 2019, pp. 341-353.
  • Aktürk, E., Karan, M. B., & Pirgaip, B. (2022). Is the effect of dividend policy on the volatility of stock prices stable? An empirical study on European countries. Spanish Journal of Finance and Accounting/Revista Española de Financiación y Contabilidad, 1-21.
  • Bintara, R. (2020). The Effect of Working Capital, Liquidity and Leverage on Profitability. Saudi Journal of Economics and Finance Abbreviated, 4(1), 28-35.
  • BUI, M. T., & NGUYEN, H. M. (2021). Determinants Affecting Profitability of Firms: A Study of Oil and Gas Industry in Vietnam. The Journal of Asian Finance, Economics, and Business, 8(1), 599-608.
  • Chen, Y., Sensini, L., & Vazquez, M. (2021). Determinants of leverage in emerging markets: empirical evidence. International Journal of Economics and Financial Issues, 11(2), 40.46
  • Edmund, NKN.(2018), Determinants of Dividend Policy among Banks Listed on the Ghana Stock Exchange, Business & Financial Affairs, 1(7), 1-7.
  • Garcia, D., Anckarsater, H. Lundstrom, S. (2013). Self-directedness and cooperativencess psychosocial dysfunction and suffering in essence. The Scientific world Journal, April 2013.
  • GHASEMI, M., & AB RAZAK, N. H. (2017). Determinants of Profitability in ACE Market Bursa Malaysia: Evidence from Panel Models. International Journal of Economics & Management, 11. 847-869
  • Godfred A. Bokpin and Anastacia C. Arko. (2009). Ownership Structure, Corporate Governance and Capital Structure Decisions of Firms: Empirical Evidence from Ghana. Studies in Economics and Finance, Vol. 26, No. 4, Pp. 246-256.
  • Jensen, G. R., Solberg, D. P., & Zorn, T. S. (1992). Simultaneous determination of insider ownership, debt, and dividend policies. Journal of Financial and Quantitative analysis, 27(2), 247-263.
  • m, Hameed, Sh.(2017). The Relationship between Dividend Payout and Firm Financial Performance, Research in Business and Management,1(4), 2330-8362.
  • KANAKRIYAH, R. (2020). Dividend policy and companies' financial performance. The Journal of Asian Finance, Economics, and Business, 7(10), 531-541.
  • Kusuma, O., & Semuel, H. (2019). The Effect of Company Performance on Dividend Policy in Manufacturing Companies. Petra International Journal of Business Studies, 2(2), 87-95.
  • Kuswanto, A., & Kharisma, A. (2022, January). Factors that influence on dividend policy. In Conference In Business, Accounting, And Management (CBAM) (Vol. 1, No. 1, pp. 23-33).
  • Lainé, M. (2021). Opening the black box of investment expectations: an empirical inquiry into animal spirits. Journal of Post Keynesian Economics, 44(3), 411-433.
  • Liu, C. and A. Chen, (2015), "Do Firms Use Dividend Changes to Signal Future Profitability? A Simultaneous Equation Analysis", International Review of Financial Analysis 37, PP. 194-207.
  • Pham, K. X., Nguyen, Q. N., & NGUYEN, C. V. (2020). Effect of Working Capital Management on the Profitability of Steel Companies on Vietnam Stock Exchanges. The Journal of Asian Finance, Economics, and Business, 7(10), 741-750.
  • Phan, T. K, Tran. N. H.(2019). Dividend policy and stock price volatility in an emerging market: Does ownership structure matter?, Cogent Economics & Finance .7: 1-29.
  • Pattiruhu, J. R., & PAAIS, M. (2020). Effect of liquidity, profitability, leverage, and firm size on dividend policy. The Journal of Asian Finance, Economics, and Business, 7(10), 35-42.
  • Pinto, J. M., & Silva, C. S. (2021). Does export intensity affect corporate leverage? Evidence from Portuguese SMEs. Finance Research Letters, 38, 1-8.
  • Mbulawa, S., Okurut, N. F., Ntsosa, M. M., & Sinha, N. (2020). Determinants of Corporate Dividend Policy under Hyperinflation and Dollarization by Firms in Zimbabwe. Journal of Applied Finance and Banking, 10(2), 1-24.
  • Mohsin Hafeez,M., Sadia, S, Iqra. If, Hamid. A. B.(2018). Impact of Dividend Policy on Firm Performance: Evidence from theManufacturing firms in Pakistan), International Journal of Advance Study and Researc,1 (4), 2581-5997.
  • Munawar, A. (2020, May). Determinants of Corporates Leverage in Indonesia. In 2nd International Seminar on Business, Economics, Social Science and Technology (ISBEST 2019) (pp. 302-306). Atlantis Press.
  • Nga, D. Q., Dien, P. M., Linh, N. T. C., & Tuoi, N. T. H. (2019, January). Impact of Leverage on Firm Investment: Evidence from GMM Approach. In International Econometric Conference of Vietnam (pp. 282-295). Springer, Cham.
  • Nor, F. M., Ramli, N. A., Marzuki, A., & Rahim, N. (2020). Determinants and Stability of Dividend Payment: The Case of Malaysian Public-Listed Shariah-Compliant Firms. Jurnal Pengurusan (UKM Journal of Management), (60). 83-95
  • Oliver, B. V., & Oliver, R. M. (2014). Optimal ROE loan pricing with or without adverse selection. Journal of the Operational Research Society, 65(3), 435-442.
  • RAHMAN, M. M., SAIMA, F. N., & JAHAN, K. (2020). The Impact of Financial Leverage on Firm's Profitability: Empirical Evidence from Listed Textile Firms of Bangladesh. The Journal of Business Economics and Environmental Studies, 10(2), 23-31.
  • Rendtorff, J. D. (2022). Managing for the Common Good: Rethinking the Business Corporation Beyond Profit-Maximization. In New Economies for Sustainability (pp. 177-196). Springer, Cham
  • Sahudin, Z., Abdullah, H., Md Elias, N. L., Ali, H., & Anuar, A. (2020). Capital structure of property sector in Malaysia. Journal of Emerging Economies & Islamic Research, 8(3), 62-73.
  • S.A, Noreen,U.(2016). Stock Price Volatility and Role of Dividend Policy: Empirical Evidence from Pakistan, International Journal of Economics and Financial Issues, 6(2), 461-472.
  • Silva, M., Gomes, L., & Lopes, I. C. (2020). Explanatory factors of the capital structure. Emerging Science Journal, 4(6), 519-529.
  • Vodwal, S., Bansal, V., & Sinha, P. (2019). Impact of Financial Crisis on Determinants of Capital Structure of Indian Non-financial Firms: Estimating Dynamic Panel Data Model using Two-Step System GMM. University Library of Munich, Germany. 1-28
  • Widyasti, I. G. A. V., & Putri, I. G. A. M. A. D. (2021). The Effect of Profitability, Liquidity, Leverage, Free Cash Flow, and Good Corporate Governance on Dividend Policies (Empirical Study on Manufacturing Companies Listed in Indonesia Stock Exchange 2017-2019). American Journal of Humanities and Social Sciences Research (AJHSSR), 5(1), 269-278.