ASYMMETRIC INFORMATION AND DIVIDEND PAYOUT POLICY: EVIDENCE FROM IRAN STOCK EXCHANGE

This study aims to investigate impact of asymmetric information on dividend payout policy in context of Iran. An analysis has been made as evidence taking sample (170 firms) of listed non-financial firms from the Tehran Stock Exchange (TSE). The dataset includes Iran listed firms during the period 2009-2011. The results indicate a positive relationship between information asymmetry and dividend payout ratio which is confirms the signaling theory in Iran capital market. Other results direct a negative relationship between leverage ratio and dividend payout ratio. Also, there is a significant and positive correlation between firm size and dividend payout ratio. However, no relationship was found between earnings per share and dividend payout ratio.

Asymmetric Information, Dividend Payout Policy and Signaling Theory