DIVIDEND POLICY AND INFORMATION ASYMMETRY FROM THE SIGNALING PERSPECTIVE

Journal Title: Asian Economic and Financial Review - Year 2013, Vol 3, Issue 4

Abstract

This study attempts to examine the relevance of dividend policy and information asymmetry From the Signaling Perspective and Compare the relative information content of them. Based on sampling, 88 firms from Tehran Stock Exchange (TSE) were selected and examined during 2003 to 2010. The findings show that the profit division policy(Divisible profit proportion) has positive and significant relation with market data asymmetry namely when the profit division policy increases the data asymmetry increases, too. On the other side, the test findings indicate the investors are sensitive to the EPS changes and when the EPS changes are positive their divisible profit increases, but when the divisible profit of the company decreases the data boggles their mind and data asymmetry increases.

Authors and Affiliations

Reza Zare| Accounting Department, Marvdasht Branch, Islamic Azad University Marvdasht, Iran, Javad Moradi| Shiraz University,Shiraz, Iran, Hashem Valipour| Accounting Department, Marvdasht Branch, Islamic Azad University Marvdasht, Iran

Keywords

Related Articles

CORRUPTION AND POLITICAL VIEW POINT OF THE GOVERNMENTS IN TRANSITION COUNTRIES EU MEMBERS

In achieving their goals in conducting measures of their economic policy, governments of transition countries EU members, should realize the importance of suppressing the phenomenon of corruption in economy, especially i...

Wage rate, regional trade bloc and Location of Foreign Direct Investment Decisions

The objective of this paper is to examine the impact of wage rate on FDIlocation in South East Asia in the presence of trading systems (regional andmultilateral trading systems) drawing example from panel data of fiveASE...

STOCK LIQUIDITY DETERMINATION EVIDENCE FROM AMMAN STOCK EXCHANGE

This study aims to investigate and examine the factors affecting stocks liquidity by using data of 100 share holding companies that represent Amman Stock Exchange (ASE) index in the recent period from 2011 to 2013. The r...

COMPARATIVE STUDY BETWEEN MALAYSIA AND NIGERIA FORMAL LOW COST HOUSING POLICY ISSUES

The current practice housing policies of Malaysia and Nigeria did not highlight on the affordability of formal low cost houses. There are no laws, sections or guidelines regulating the affairs of formal low cost housing....

THE EFFECTS OF FIRM SPECIFIC FACTORS AND MACROECONOMICS ON PROFITABILITY OF PROPERTY-LIABILITY INSURANCE INDUSTRY IN TAIWAN

This article investigates the relationship between firm specific factors and macroeconomics on profitability in Taiwanese property-liability insurance industry using the panel data over the1999 through 2009 time period....

Download PDF file
  • EP ID EP1902
  • DOI -
  • Views 499
  • Downloads 30

How To Cite

Reza Zare, Javad Moradi, Hashem Valipour (2013). DIVIDEND POLICY AND INFORMATION ASYMMETRY FROM THE SIGNALING PERSPECTIVE. Asian Economic and Financial Review, 3(4), 445-463. https://europub.co.uk./articles/-A-1902