Profitability and market power on dividend policy of listed companies in Tehran Stock Exchange

Abstract

The aim of this study is to investigate the role of market power and profitability on dividend policy of listed companies in Tehran Stock Exchange. The research methodology is descriptive-documentary and using a practical approach. Sample’s data were extracted from selected Stock Exchange companies and were analyzed by using the Eviwes 6 software. The results showed that among the eight profitability variables, accumulated profits to total assets ratio, asset growth rate, firm size, Market capitalization to book value ratio, return on assets and cash flow rate of return on assets, the Herfindahl-Hirschman index of all variables except variable of firm size, have a direct and significant effect on dividend payment.