Examination of the Impact of Financial Risk and Volatility of Macroeconomic Variables on Dividend Policy: A Case Study of Listed Companies on Tehran Stock Exchange

Dividend policy is one of the most controversial financial issues. Moreover, decisions about dividend policy are taken by corporate executives and shareholders with comprehensive consideration of macroeconomic factors and financial risks. Thus this study uses panel data econometric model to examine the impact of financial risk and volatility of macroeconomic variables on dividend policy in selected companies listed on Tehran Stock Exchange during the period 2001-2012.The results of this study indicate that systematic risk has positive impact on dividend, while non-systematic risk has negative impact. Other obtained results indicate that economic growth and inflation volatility have insignificant impact, while the impact of volatility on dividend in negative.