Investigating the Impact of the Dividend Policy and the Ownership Structure on the Financing Constraints (KZ Index) of the Companies Listed on the Tehran Stock Exchange

The most important determinants of the level of profit are financing constraints, investment opportunities, firm size, and pressure from the stockholders, government regulators, and the firm's governing body. In general, corporate governance, consists of legal norms, culture, and institutions that determine the management conduct and corporate performance. In this respect, what is of greater attention is the growing presence of institutional and legal entity investors in the circle of the owners of the publicly traded companies. The aim of this study was to investigate the effect of dividend policy and the ownership structure on the financing constraints in the stock exchange market. The population of this empirical study consists of all the companies listed on the Tehran Stack Exchange during the period from 1385 to 1393 of which, through systematic sampling and screening process, 135 companies were taken as the sample. The results show: a) The percentage of stock owned by the largest shareholder has a positive and significant effect on the financing constraints (KZ) variable. b) the effect of active and passive institutional ownership on the financing constraints variable are, respectively, positive and negative, however, active institutional ownership is statistically significant and passive institutional ownership is statistically insignificant. Finally, c) the effect of dividend relative to total assets on the financing constraints is negative and significant.