Shareholder Satisfaction Theory and Determinant's of dividend policy factors in Tehran Stock Exchange

The aim of this study is to investigate the determinants of dividend policy in Teheran Stock Exchange (TSE). To do so, a fresh bunch of recently introduced theories including catering theory, cash flow uncertainty, life cycle hypothesis, systematic risk, dividend stability and fixed assets variable are selected to be investigated. Data for hypotheses testing derived from financial statements of firms listed in TSE for the period between 2003-2010. For analyses purpose Tobit regression is used because of the censuring nature of dependent variable. In addition to six main theories and variables, four control variable including cash, firms size, profitability and investment opportunity are considered. The results of study show that mangers of TSE firms do not cater to investors demand and they have not stable dividend policy. Moreover, firm’s life cycle and systematic risk are not determinants of dividend policy while cash flow uncertainty, fixed assets, cash, firm’s size, profitability and investment opportunity are.