Examining the relationship between dividends, company board size and stock liquidity

Abstract

Several studies provide compelling evidence in support of the effect of favorable dividends on stock price declines. For this purpose, in this research, we intend to examine the relationship between dividends, the size of the company's board of directors, and the liquidity of shares. The effect of corporate dividend policy on the movement of stock prices has been a significant issue for a long time. Research in the literature, and the positive relationship between the company's dividend policy and stock price movements have been well documented in many studies. The statistical population of this research includes all the companies admitted to the Tehran Stock Exchange during the years 1395-1402, in order to conduct analyzes Finally, 9Eviews software and Excel 2010 software were used. Finally, we obtained the results that the liquidity of the shares and the size of the board of directors have a negative and significant effect on the company's dividends.