Journal of
Accounting and Taxation

  • Abbreviation: J. Account. Taxation
  • Language: English
  • ISSN: 2141-6664
  • DOI: 10.5897/JAT
  • Start Year: 2009
  • Published Articles: 197

Article in Press

Investigating the relation between dividends with expected future earning in food industrial companies listed in Tehran Stock Exchange from 2007 to 2013

sudabeh Mahmoodian

  •  Received: 22 June 2015
  •  Accepted: 13 April 2016
Today one of the most common and popular investment methods in the society is purchasing different companies’ shares by natural persons and legal entities. So having proper and in time information is one of the basic requirements to insure investment and its profitability especially in the coming years. The companies’ managers also need tools to transfer information and their future goals to shareholders and investors. The basic question is that if it is possible to use dividends, to predict the coming profits of the company and if change in dividends has effect on careful prediction of coming profits. In this regard, this research studies the relation between the amount of dividends and the rate of careful prediction of coming profits of listed food industrial companies in Tehran Stock Exchange from 2007 to 2013. For this purpose six hypothesis are designed through careful studying of subject literature. The hypotheses are analyzed by applying multivariate regression in CKSS adjusted model and t- tests. The results of these hypotheses test indicate that the amount of dividends paid doesn’t have any effect on careful prediction of coming profits.

Keywords: earnings per share - dividend-stock returns –reaction coefficient of coming profits- Tehran Stock Exchange