Investigating the Effect of Investor Pressure on Dividend Policy

Dividend payment decisions are one of the key components in corporate policy and one of the most important issues in the financial literature; On the one hand, it affects the investments of companies. On the other hand, many shareholders with short-term investment horizons want to distribute cash dividends, so managers must always balance between their various interests and profitable investment opportunities in order to maximize wealth.

In this study, the effect of investor pressure on dividend policy was examined. To achieve the research goal, 84 companies listed on the Tehran Stock Exchange in the period 2013 to 2018 were selected and using the combined data approach, research hypotheses were tested.

The results of this study indicate that the pressure of investors has a positive and significant effect on the dividend per share and the ratio of dividend to sales.Originality/Value: Explaining the policy of profit sharing of companies and its determining factors is one of the biggest challenges that has always been faced by thinkers in the field of financial economics, which is examined in the present study.