Abstract
Article history: Received January 28, 2014 Accepted 20 June 2014 Available online June 26 2014 In this study, we examined the relationship between the dividend policy and shares liquidity under different criteria on 80 selected firms listed on Tehran Stock Exchange over the period 2007-2011. We used of Amivest, turnover, Gopalan and flow measures for shares liquidity. Using some statistical tests, the study has determined that there was not any meaningful relationship between Amivest liquidity with dividend policy. However, the study detected a reverse relationship between turnover liquidity and with dividend policy, and direct relationship between Gopalan liquidity with dividend policy and between flow liquidity with dividend policy. © 2014 Growing Science Ltd. All rights reserved.
Highlights
Dividend policy has been a question in financial management for several years and some people called it “dividend puzzle” Black (1976)
We examined the relationship between the dividend policy and shares liquidity under different criteria on 80 selected firms listed on Tehran Stock Exchange over the period 2007-2011
The study detected a reverse relationship between turnover liquidity and with dividend policy, and direct relationship between Gopalan liquidity with dividend policy and between flow liquidity with dividend policy
Summary
Dividend policy has been a question in financial management for several years and some people called it “dividend puzzle” Black (1976). Liquidity plays an essential role in the valuation of assets because it is important for investors to determine an appropriate market to sell their assets. This is the risk of non-liquidity of assets, which prevents investors from investment in Stock Exchange. Some investors may wish to have early access to their financial investment For this reason, the power of liquidity is very importance. Liquidity is described as trading shares at a low cost without influencing the price within the shortest possible time It serves as the basis for sustainability and an important factor for the study of efficiency and maturity of future markets. The key question is that whether or not there is any relationship between dividend policies and any of shares liquidity criteria
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
