The Impact Of Cost Of Capital On Dividend Policies

This study investigated the impact of cost of capital on dividend policies of companies listed in Tehran Stock Exchange. In order to realize the objectives of the research, twelve hypotheses are developed that examined Significant relationship between cost of capital and dividend policy of the companies. The statistical method used to test hypotheses raised in this study, is “Panel Data” and To test a hypothesis, a model is estimated. Statistical sample of this study includes 71 companies during a ten-year period between 2000 to 2009. The Results of the research hypotheses show that cost of equity, cost of retained earnings and the weighted average of cost of capital has a significant effect on corporate dividend policy But In this study, significant relationship between the cost of debt and dividend policies of companies has not found.