The Relationship between the Corporate Governance and the Stock Institutional Ownership with the Dividend- a Case Study of Tehran

Abstract

This study focuses on the relationship between the corporate governance and the institutional stock ownership with the divided in Tehran stock exchange, which the corporate governance consist of variables such as: the board size, the board independence and the duality. The study uses the descriptive and analytical method based on a combined data analysis. It is applied the data of 81 accepted companies at Tehran Stock Exchange as a sample covering data from 2005 to 2011. Multi variables regression model is used to analysis the data. The results indicate the meaningful relationship between the corporate governance variable and the dividend. In other words, the companies with the lower rate of the corporate governance pay more dividends to the shareholders. In addition, there is not meaningful relationship between the institutional stock ownership and the dividend variables because the most of Iranian companies ownership structure owned by government institution. The results of this paper will be useful who want to involve in the capital market based on the company dividend decision makers the stock market in Iran.