The purpose of this research is to study the relationship between dividend payments and stock price crash risk for the companies listed on Tehran Stock Exchange (TSE). Also, this research is to study the role of information asymmetry and free cash flow on the relationship between dividend payments and stock price crash risk. Hence, this research utilizes NCSKEW, EXTR_SIGMA, and DUVOL as proxies for stock price crash risk. The research population composes of total companies listed in the TSE and statistical sample composes of 68 companies listed in the TSE which have been studied during the years 2003 to 2013. The multivariate linear regression is used for testing hypothesis of the research. The results suggest that there is a negative relationship between dividend payments and stock price crash risk proxies (i.e. NCSKEW and DUVOL) but, there is no relationship between dividend payments and stock price crash risk proxies by EXTR_SIGMA. Also, the results showed that information asymmetry has not a moderating role in the relationship between dividend payments and stock price crash risk. In addition, the results showed that free cash flow has a moderating role in the relationship between dividend payments and stock price crash risk proxies by NCSKEW.
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Assadi, G. H., & Kazemi, K. (2018). The Relationship Between Dividend Payments And Stock Price Cash Risk In The Companies Listed On The Tehran Stock Exchange. Financial Management Perspective, 8(22), 9-28.
MLA
Gholam Hossein Assadi; Kazem Kazemi. "The Relationship Between Dividend Payments And Stock Price Cash Risk In The Companies Listed On The Tehran Stock Exchange". Financial Management Perspective, 8, 22, 2018, 9-28.
HARVARD
Assadi, G. H., Kazemi, K. (2018). 'The Relationship Between Dividend Payments And Stock Price Cash Risk In The Companies Listed On The Tehran Stock Exchange', Financial Management Perspective, 8(22), pp. 9-28.
VANCOUVER
Assadi, G. H., Kazemi, K. The Relationship Between Dividend Payments And Stock Price Cash Risk In The Companies Listed On The Tehran Stock Exchange. Financial Management Perspective, 2018; 8(22): 9-28.
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