Review of the Relationship between Profit Dividend Stability and Fluctuations of Stock Price in Accepted Firms of Tehran Stock Exchange

Review of the Relationship between Profit Dividend Stability and Fluctuations of Stock Price in Accepted Firms of Tehran Stock Exchange

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Part of #Review of the Relationship between Profit Dividend Stability and Fluctuations of Stock Price in Accepted Firms of Tehran Stock Exchange# :

Publishing year : 2013

Conference : The first international epic political conference (with an approach to Middle East developments) and economic epic (with an approach to management and accounting)

Number of pages : 6

Abstract The purpose of this study is to estimate the profit dividend stability in selected firms and also the proportion of cash profit percent to earn per share (EPS) on stock price in Teheran stock exchange. In this research, we have a broad view of the effective factors on stock price and we review the relationship between profit margin stability in Teheran Stock Exchange companies and we also examine the percentage of cash profit ratio to any stock stock profit on stock price. In this research statistical community includes 48 companies and also, 1 period of 7 years (2004-2010). There are two hypotheses for the test: Hypothesis1; There is a significant relationship between dividend profitability and fluctuations in stock prices. Hypothesis2; A significant relation exists between the percentage of profit dividend and the fluctuations of stock price. So, the first theory of theoretical research is perorated, we also test the hypothesis with reference to the Tehran Stock Exchange. Thus, for the test hypothesis first, is the basis of the standard of interest profit dividend (DPS / EPS), selected 43 firms as firms that have a stable profit dividend policy. Also for the test of the second hypothesis, the first, calculated for total firms, the percentage of profit dividend (DPS / EPS) in firms for those years for total firms. In the next step for trust independent variables we used Durbin-Watson test and test periods (Runs). In the end, several regression runs for the perfection of the tests of this research. Thus, the results show that there is a positive relationship between the profit dividend stability and fluctuations of the stock price, as well as the positive relationship between the percentage of profit dividend and stock price fluctuations In accepted firms in the Tehran stock exchange.