Dividend Policy and Information Asymmetry from the Signaling Perspective

Reza Zare, Javad Moradi and Hashem Valipour

Asian Economic and Financial Review, 2013, vol. 3, issue 4, 445-463

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.

Keywords: Dividend policy; Information asymmetry; Signaling theory; Profitability (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

Downloads: (external link)
https://archive.aessweb.com/index.php/5002/article/view/1009/1492 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:asi:aeafrj:v:3:y:2013:i:4:p:445-463:id:1009

Access Statistics for this article

More articles in Asian Economic and Financial Review from Asian Economic and Social Society
Bibliographic data for series maintained by Robert Allen ().