Impact of Ownership Structure on Dividend Policy InTehran Stock Exchange

In this research, the effect of ownership structure variables (Institutional ownership, block holder, free float) and interactive effects of these variables on dividend policy in various industries have been investigated. Cash to earning per share ratio was a proxy for dividend policy. Test of hypothesis was carried out by multiple regression analysis by generalized least square (GLS) and pooled (panel) least squared (PLS) methods. In the present study, the effect of the variables other than dividend policy were assessed by (PLS) the interactive effect of ownership structure variables by industry type as dummy variable on dividend policy assessed by (GLS). Statistical population reviewed are all companies listed in Tehran Stock Exchange during 2004-2008 excluding investment companies and financial intermediary. Finally 65 companies that all required information were examined. The result showed that among ownership structure variables, institutional ownership and free float variables have significant relationship with dividend policy. The interactive effect of institutional ownership on dividend policy in different industries were significant and different, hence the type of industry variable can be a damper effect on the relationship between institutional ownership variables and dividend policy.