Identification Effective Factors on Dividend by Logit Model

In this paper, we try to find factors that determine the ability of companies to pay dividend. After searching in literature review, we determined some factors, then, we defined five hypotheses. Therefore, we built variables and collected data from 141 companies listed in Tehran stock Exchange over a period of eight years (1380-1387). Given the purpose of this study to determine the factors affecting the dividend payment; Logit model was used. The final model was estimated by Logit panel with fixed effects, showed that among the factors considered, uncertainty of cash flows, company’s life cycle, investment opportunities and company’s profitability having impact on the dividend payments. The marginal effect showed that company’s life cycle and company’s profitability are two factors with the most significant effect.