Implications of Lintner’s Model in Examine of dividends Adjustment Speed with the Rolling Regressions in Crisis Situations

Internal financial flexibility Management directly relies on how to use cash, unused debt capacity and its interaction in crisis situations and external shocks and also on corporate dividend policies. Investigating unused debt capacity as a component of corporate internal financial flexibility is important because it addresses the dynamics and sustainability of internal financial flexibility and improves corporate performance in dealing with shock and unexpected financial crises as well as the use of Optimized for investment opportunities and profitability. In this regard, the present paper examines the relationship between unused debt capacity and the dividends adjustment speed, considering the role of Liquidity shock moderation. In order to measure the dividends adjustment speed, which is a benchmark for dividend smoothing, the rolling window regressions based on the Lintner model (1956) was used Dijang et al (2012) and Faulkender and Wang (2006) method is applied for measuring the unused debt capacity, which is an indicator for measuring financial flexibility. According to the research constraints, 105 companies listed in Tehran Stock Exchange during the period of 2008-2018 using the STATA software have been investigated. The results of the research show that the unused debt capacity does not have a significant effect on the dividends adjustment speed. Also, the Liquidity shock has no effect on the relationship between the unused debt capacity and the dividends adjustment speed.