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Management Science Letters

ISSN 1923-9343 (Online) - ISSN 1923-9335 (Print)
Quarterly Publication
Volume 4 Issue 5 pp. 1043-1050 , 2014

A study on relationship between dividend changes with future profitability Pages 1043-1050 Right click to download the paper Download PDF

Authors: Hassan Ghodrati, Abbas Hashemi

DOI: 10.5267/j.msl.2014.3.004

Keywords: Dividends changes, Profit growth, Profitability

Abstract: This paper studies the relationship between dividend changes and future profitability of listed companies in Tehran Stock Exchange. Using the information of 191 companies, the study has implemented some regression techniques. The results of the research model analysis indicate that the changes in dividend contain significant and important information content, for the future profitability and dividend changes, and have an important and positive impact on the future profitability of the company. The results also show that changes in dividend can improve the company & apos; s future performances and messages to recovery the activities and future performance of the company. However, the results have shown the greatest impact on the performance of the dividend changes, for a year after considered year and not for two years after. In other words, the information content of dividend changes are more about the performance of the next year and the information provided is lower in the next two years.

How to cite this paper
Ghodrati, H & Hashemi, A. (2014). A study on relationship between dividend changes with future profitability.Management Science Letters , 4(5), 1043-1050.

Refrences
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Journal: Management Science Letters | Year: 2014 | Volume: 4 | Issue: 5 | Views: 2323 | Reviews: 0

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