The relationship between cash flow volatility and cash flow sensitivity of cash with dividend policy in Tehran stock exchange

Kamyabi, Yahya; Nikravan Fard, Bita; Salmani, Rasoul

doi:10.22059/acctgrev.2014.50775

The relationship between cash flow volatility and cash flow sensitivity of cash with dividend policy in Tehran stock exchange

Document Type : Research Paper

Authors

Yahya Kamyabi ¹

Bita Nikravan Fard ²

Rasoul Salmani ²

¹ Assistant Prof., Accounting, Faculty of Economic and Administrative Sciences, University of Mazandaran, Babolsar, Iran.

² MSc, Accounting, Faculty of Economic and Administrative Sciences, University of Mazandaran, Babolsar, Iran.

10.22059/acctgrev.2014.50775

Abstract

Dividend Policy and its major factors are one of the most important matters in financial literature that have been widely investigated. The authors have mentioned some of the firm features that have a positive impact on dividend policy. One of these features is the company's financial position and liquidity. In recent years, attention to cash flow reports increased and worldwide legislative and regulatory bodies, emphasized on the importance of cash flow information in capital markets. In this paper, we aim to investigate the impact of cash flow volatility and cash flow sensitivity of cash on firm's dividend policy with using data from 116 listed companies in Tehran Stock Exchange, during a period of 2007-2012 years. The results showed that there is no significant relationship between cash flow volatility and dividend policy and also the results showed no significant relationship between the cash sensitivity and dividend policy.

Keywords

cash flow sensitivity

cash flow volatility

dividend policy