Investigating the Effect of Dividend Policy on the Fundamental Firm Value in Tehran Stock Exchange

Dividends are recognized as an important and influential factor in the value of stocks and therefore the market value of the company. It can be said that dividend (cash) has always been of great importance for investors and shareholders. Therefore, in the research, the effect of dividend policy on firm value has been investigated by considering the basic principles of the company and also the effect of company size on this relationship. Finally, the amount of dividends premium in this period is stated.Research In order to achieve the goal of research, 93 companies listed on the Tehran Stock Exchange during a period of 8 years (2013-2020) 744 years-company has been done using the panel data regression method. The relationship between dividend payout and the firm value is positive and significant. As a result, the dividend premium in this period is also positive. Panel data regressions suggest that the dividend premium for firms’ equity and the dividend premium for firms’ assets. Dividend premium in this period is also positive. According to the results, the stock prices of dividend payers are great compared to those of non-payers (retained earnings). The stock price with dividend payout is higher than the shares with accumulated dividend. The positive dividend premium indicates the investors' preference for dividend payout