Investigating the Impact of Privatization on Dividend Profits and Financial Performance of listed Companies at Tehran Stock Exchange

Privatization is an executive, financial, and legal process that governments in many countries carry out to reform the economy and the administrative system of the country. According to the privatization literature, the objective of privatization in three areas of financial, economic and social politics include increasing the efficiency of enterprises, proper distribution of income, small-scale government, private sector empowerment, the expansion of capital markets, increased competition, the protection of consumer interests through the transfer of ownership and Management of state-owned enterprises to the non-state sector. In this research, we tried to examine the effect of dividend privatization and financial performance of companies in Iran. After trading information in the seven-year period of 2011-2017 was collected from the Stock Exchange. In this research, systematic elimination method has been used. The statistical sample consists of 62 companies, 31 companies, more than 50% of their shares were privatized, and 31 companies, less than 50% of their shares were privatized, also for Data analysis was done using SPSS software and paired t-test. What is summarized in the overall conclusion of the research hypothesis test is that there is a significant difference between the average financial performance and dividend income of companies before privatization with the average financial performance and dividend profits of companies after privatization.