The impact of board independence on the relationship between earnings quality and dividend yield

The present study investigates the effect of board independence on the relationship between earnings quality and dividend yield. This study is applied in terms of purpose and is a causal (post-event) type of research methodology. The statistical population of the study consisted of all listed companies in Tehran Stock Exchange. Using systematic elimination sampling method, 129 companies were selected and surveyed over a 5 year period between 2014 and 1977. Ditch & Ditch's (2002) model was used to measure earnings quality variables. The method used for data collection was library and multiple linear regression was used to test the hypotheses. Stata software version 15 was used to run the tests and final estimation of the models. The results show that there is a direct and significant relationship between earnings quality and dividend yield. Board independence has a direct and significant effect on the relationship between earnings quality and dividend yield. Board independence exacerbates the direct relationship between earnings quality and dividends.