Analyzing Threshold Effects of Dividend per Share on Financial Return in TSE-Listed Companies

Document Type : Original Article

Authors

1 PhD student of Accounting, Islamic Azad University, Qeshm International Campus, Science Department, Qeshm, Iran.

2 Assistant Professor, Department of Financial Management, International branch, Islamic Azad University, Qeshm, Iran

3 Assistant Professor, Department of Accounting, Qeshm Branch, Islamic Azad University, Qeshm, Iran

4 Assistant Professor, Department of Management, Adiban Higher Education Institute, Garmsar, Semnan

5 Department of Accounting and Management, Faculty of Humanities, Islamic Azad University, Bandar Abbas Branch, Bandar Abbas, IRAN.

10.30495/ijfma.2024.70539.1941

Abstract

In the reports of companies listed on stock exchanges, net income is much more important than any other information, for it concerns the current and future performance conditions of companies. It can also help estimate future returns and provide an outlook for the managerial mindsets and future activities of companies
This study aims to examine the threshold effects of dividend per share (DPS) on the financial returns of companies listed on the Tehran Stock Exchange (TSE). To this end, 109 TSE-listed companies with financial information available for the 2015–20 period were selected. Research hypotheses were tested by balanced panel threshold regression.Financial reporting is a key accounting procedure that aims to provide users with the necessary information for making economic decisions on evaluating the performance and profitability of businesses. According to the statistical significance results of the thresholds and difference-in-difference (DID) programming approach, the thresholds had nonlinear correlations with the effects of DPS on financial returns with single or multiple thresholds. Furthermore, these two variables were directly correlated, where a higher DPS boosted financial returns.
Keywords: threshold effects of DPS, financial return threshold
JEL Classification: G14, G35, M41

Keywords

References

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