Dividend Policy and Information Asymmetry from the Signaling Perspective
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Keywords

Dividend policy, Information asymmetry, Signaling theory, Profitability

How to Cite

Zare, R. ., Moradi, J. ., & Valipour, H. . (2013). Dividend Policy and Information Asymmetry from the Signaling Perspective. Asian Economic and Financial Review, 3(4), 445–463. Retrieved from https://archive.aessweb.com/index.php/5002/article/view/1009

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.

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