Social Capital and Dividend Payout Policies

Social capital has been discussed by researchers as a new topic and its relationship with other variables has been of interest to researchers. As an emerging form of economic capital, social capital leads to mutual trust and beneficial partnerships in business environment and thereby driving economic behaviors toward collective well-being. In this study, the relationship between social capital and corporate payment policy in Tehran Stock Exchange has been investigated using 104 sample companies in the period 2016-2020. In order to investigate this issue, four hypotheses were formulated and tested using multivariate regression models. The results show that the relationship between social capital (Relationship with other companies and relationship with the government) with corporate payout policies is statistically positive and significant. Overall, we document that social capital plays an important role in influencing cash dividend payout policies.