The Investigation of the Relation between Distributed Dividend and Returns on Shareholderʹʹs Equity (Case Study: Companies Accepted in Tehran Stock Exchange)

Being acquainted fully and scientifically and based on experimental tests with the association between distributed dividend and returns on shareholderʹs equity (ROE) has a tremendous impact on decision-making process of shareholders, potential shareholders (would-be shareholders) and managers of companies. Therefore, in the following research the association between ROE and the distributed dividend of the companies in Tehran Stock Market from 2007 to 2011is analyzed. In order to test and examine the research hypotheses under the name of "the analysis of the association between ROE and the distributed dividend of the companies in Tehran Stock Market", the required data, including data about the distributed dividend and ROE concerning the above-mentioned years have been collected from monthly and annual reports by the Stock Exchange and financial reports and statements of companies, and analyzed by the correlation coefficient and the T-student test. Moreover, the Fisher-F test was used to identify and analyze any possible linear relationship among the variables. The results show a significant relationship between distributed dividend and returns on shareholderʹs equity (ROE), and clarify another aspect of dividend distribution process and occupy a substantial role in completing the information required by investors and analysts.