Examining the relationship Social Capital, Investment Efficiency and Corporate Payout

Social capital has been discussed by researchers as a new topic and its relationship with other variables has been of interest to researchers. As an emerging form of economic capital, social capital leads to mutual trust and beneficial partnerships in the business environment and thereby driving economic behaviors toward collective well-being. When a company's social capital is at a high level, managers show less opportunistic behavior and strive for more cooperation and interaction in the company. The current research is a semi-experimental post-event research in terms of practical purpose and in terms of data collection method. In this study, the relationship between social capital, investment efficiency, and corporate payment policy in Tehran Stock Exchange has been investigated using 104 sample companies in the period 2017-2021. In order to investigate this issue, five hypotheses were formulated and tested using multivariate regression models. The results show that the relationship between social capital (Relationship with other companies and relationship with the government) with corporate payout policies is statistically positive and significant. Overall, we document that social capital plays an important role in influencing cash dividend payout policies. Also, social capital increases the efficiency of the company's investment.