Examining the Relationship Between Dividend Policy and Market Value Added
Keywords:
Dividend policy, dividend yield ratio, dividend payout ratio, market value addedAbstract
The aim of this study is to examine the relationship between dividend policy and market value added in the Tehran Stock Exchange. To test the research hypotheses, we encountered homoscedasticity, and to estimate the model, the Ordinary Least Squares (OLS) method was used. Additionally, to ensure the absence of multicollinearity among the explanatory variables, the Pearson correlation test was employed. The results of the test indicated that there was no linear or technical correlation among the explanatory variables. Based on the results obtained from the stationarity test, we confirmed the non-spuriousness of the relationships within the regression and the significance of the variables. Furthermore, the normality of the error term was tested, and it was found that the residuals from the model estimation did not follow a normal distribution at the 95% confidence level. However, given the large number of observations, the non-normality of the residual distribution can be disregarded. Moreover, an examination of the residual distribution revealed that it approximates a normal distribution. The results obtained from the implementation of the research models indicated that the first, third, and fourth hypotheses of the study were accepted.
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