Dividend Policy From Agency Theory Perspective

Dividend payout is among the information which has effect on investors’ decision making. There are many factors which effect this parameter. Company ownership structure is among such factors. Various investors groups could have various effects on firm performance and dividend payout. The most significant questions are: If dividend payout is in accordance with opportunistic goals proposed in agency contexts? If outside directorship have any effect on profit distribution? And, if these variables could be considered as indirect substitutes or supplements for mitigating agency costs?The research provides answers to the above questions. For this purpose, the information for 67 accepted firms in Tehran Stock Exchange (TSE) in a period between years 2001 to 2008 was reviewed by statistic techniques. Results show that there is a negative significant relationship between Outside Directorship ratio, Asset Structure, Business Risk, Debt Level and Dividend Payout ratio. Also, there was a positive and significant relation between Profitability, Liquidity and Insider Ownership ratio and Dividend Payout ratio. Firm size and Growth Opportunities have no effect on Dividend Payout.