Relationship between ownership structure and dividend policy in iran

ABSTRACT:The purpose of this study is to analyze the impact of ownership structure on dividend policy in Iran stock exchange. Dividend policy has always been one of the most controversial financial issues for all entity. Reviewing different books and articles on financial matters shows that many experts have various ideas about dividend. The general hypothesis of this study shows that there is a meaningful relationship between the concentration and dispersion of ownership structure and dividend policy of the firms. The statistical sample includes 66 firms in four years (2007-1010). The data were studied descriptively and analytically. In descriptive statistics, the dispersion of the data was studied using the central and dispersed factors and was compared with the normal dispersion. In the analytical part, the model parameters were analyzed and tested according to Panel analysis. Before assessing the models, we controlled some pre-planned models, such as: being normal, linear, and having no far points using proper tests and tools. Also, having assessed the models, we tested the similarity, variance, and the lack of self – correlation. According to the results, there is a positive and meaningful relationship between ownership concentration and payout ratio and also there exists a negative relationship between the free float shares and payout ratio.