The study of relationship between dividend policy & corporate governance in Tehran Stock Exchange



The Agency Theory is one of the interesting debates that it devoted itself many research in financial literature. Based on agency theory, this study explores agency costs as a determinant of dividend policy. Since the shareholder rights are related to agency problems and thus also to corporate governance; Therefore, this paper tend to investigate relation between dividend policy and corporate governance, as tools for solving agency problems. This study is descriptive-correlation based on panel data analyzing. The 125 firms existing in Tehran Stock Exchange have selected as sample for time period 1383-1386. also, Corporate governance index, counted based on check list that divided to eight category disclosure, Business moral, train, compliance of company law, auditing, ownership, board of directors structure , assets & liquidity management .The finding shows, there is significant and negative association between dividend policy and corporate governance. This finding emphasis that manager of stock exchange firms use dividend for taking reputation and making credit and corporate governance has effective role in dividend decisions.