The Effect of Dividend Payment on Future Stock Price Crash Risk with Considering Effect Free Cash Flow and Information Asymmetric

One of the factors that led to stock price crash is managers’ activities to conceal bad news and negative performance inside of the company. One of the cases which could prevent opportunistic behavior of managers is dividend payment. The purpose of this study is to determine the effect of dividend payment on the future stock price crash risk As well as the survey the aforementioned effect in terms of information asymmetry and high levels of free cash flow. In order to attain the research purpose, 101 companies among the listed companies in Tehran Stock Exchange during the years of 1389 to 1395 (2010 – 2017) were selected as statistical sample. In orgder to test the research hypotheses we used multivariate regression model and panel data. The results of this study showed that the dividend payment decrease stock price crash risk. In addition, the results showed that high levels of free cash flow and information asymmetry will increase the effect dividend payments on future stock price crash risk.