Master's thesis in the field of accounting
Abstract
The present research has examined the effect of group affiliation on the decision to pay dividends in companies listed on the Tehran Stock Exchange. For this purpose, the relationship between the dividend policy and factors such as information inequality; Dependence on external financing (sources outside the institution) is examined.
In line with this goal, all the companies admitted to the Tehran Stock Exchange that submitted financial statements (balance sheet, profit and loss account, cash flow statement) and required information in 1386-1390 were examined. A total of 45 companies from different industries were selected. The research method in this research is correlation. And to analyze the data and test the research hypotheses, Pearson's correlation coefficient and multivariate linear regression and ANOVA analysis were used.
The research results indicate that there is a positive and significant relationship between the payment of dividends and its amount as a result of capital dependence and information inequality and the amount of dividends paid last year. Also, there is a significant negative relationship between the payment of dividends and its amount as a result of dependence on capital and foreign financing.
Key words: dividends payable, such as information inequality; Dependence on foreign financing, Tehran Stock Exchange: Chapter 1: Research overview
1-1) Introduction:
Considering that the stock exchange is able to direct financial resources towards productive activities if the necessary conditions and conditions are ready, and accordingly act in the direction of the country's economic growth, development and prosperity, Research and exploration of various topics and issues that are somehow related to the stock exchange is of particular importance and necessity. By using the results and consequences of the research, effective steps can be taken in the direction of the development of the stock market and its activities. It has always been a major and important issue that companies should choose a policy in the distribution of profits in order to ultimately increase the stock price in the market and encourage investors to invest in the stock market as a favorable policy. The importance of this issue for company managers is very high, both for the purpose of using the information obtained in the process of running the company and through the market evaluation of their performance; Therefore, part of the power and attention of company managers is directed to the category that is referred to as "dividend policies". This issue can open the way for important economic decision-makers for different interest groups, especially investors. Because the reasons and determining factors obtained from this rooting, not only help to explain the behavior of companies in the past, but also provide a tool to predict their future movement and direction in this field. The present research, which was carried out in line with this issue, can answer to some extent the ambiguities in this field. In order to examine the theoretical issues of the subject and get familiar with its dimensions, the following concepts are explained. 1-2) Definition of the subject and statement of the problem: Business groups are a set of legally independent commercial institutions that have a common identity and are interconnected and connected in various ways such as mutual maintenance of equity rights or financial rights or management. Most likely, these groups are formed to correct information inequality and market defects. For example, information inefficiency becomes very harmful for business institutions to attract more foreign capital for investment. Group affiliates continue diversification strategies and build internal capital markets. It is interesting to mention that information problems and market defects are an important shortcut.It is interesting to note that information problems and market imperfections provide an important shortcut to the main theories of dividend policy. The basic problem is the requirement of business groups to make decisions on the dividend policy, that is, to decide on the payment of dividends (to be paid or not) and to decide on the level of payment (how much to be paid). Therefore, the problem that exists is information problems and market defects, which explains about business groups and also strengthens the decision on the policy of dividends. We generally understand that although they address market imperfections, business groups are vulnerable to information problems in dividend payout decisions and payout level decisions. (Mehrani, 1381)
Therefore, it is possible that business groups control the members of business institutions and facilitate the information that they share together in a group. In this way, information inequality is reduced. Also, this group may be able to create internal capital markets to finance the cost of fees, thus overcoming the capital market defects. It thus becomes clear that compared to independent groups, group-affiliated business institutions rely less on formal capital markets and may always be able to pay dividends. (that is, the dividend should not be removed) or keep a high dividend. When the business group creates a real internal capital market, the member business institutions do not need to use the dividend policy to indicate high profitability in order to obtain external financing. Therefore, the business institutions affiliated to the group may decide not to pay dividends, and if they do not, the ratio of ordinary dividends to special profits in the business institution affiliated to the group may be lower than that of independent business institutions (Roni Manus, 2012). The research of dividend policy theories and market failure theory is described in business groups in order to examine the effect of group dependence on the decision-making process of dividend payment and decision-making on the level of payment. 1-3 Importance and necessity of research: In developed countries, the stock exchange acts as a powerful tool to attract small and large people's capital and direct them towards productive affairs. The stock market is considered a powerful place for this, therefore, from the point of view of people who invest in the stock market, it is very important to know the causes of stock price fluctuations as well as the factors that affect the stock price. One of the most important factors is the distribution of dividends among shareholders. (Khosh Taynet, 1387)
In addition, the defects of business groups and combined companies, the common principle of the theory of policy or the procedure of dividend distribution and the theory of incapacity and market failure, or in other words, the role of information inequality and market defects in emerging markets such as the Iranian stock market, are worthy of attention for two main and important reasons. First of all, lawlessness (legal weakness), regulatory framework and technology, which is common in emerging markets, indicates information inequalities and the cost of access to the capital market there is higher compared to developed and complete markets. This, in turn, means that in emerging markets, the interest payment policy is sensitive and vulnerable, especially to these factors (mentioned factors) as well as the intensity of dependence on foreign investment and financing. Secondly, while the theories of financing, operation and warning signs predict that the level of information inequality and dependence on foreign investment (foreign capital) in the decision-making of independent companies, companies affiliated to different groups (comparative companies) and often in emerging markets, in the field of dividend policy is important and significant. (Roni Manus, 2012).
Accordingly, the knowledge of group dependence on the decision to pay dividends for both companies and investors can provide an important information basis for decision-making.
1-4) Research objectives:
In order to predict and make investment decisions, investors need information such as book value of equity, dividend policies, so that they can estimate have future profits, and determine the intrinsic value of shares using valuation models such as the residual income model.