The Relationship between Ownership and Dividend Policy: Evidence from Tehran Stock Exchange Using the Propensity Score Matching Estimator

Mahdi Filsaraei, Alireza Zarei


In this study, a new aspect of the relationship of ownership (the endogenous relationship) and dividend policy has been investigated. For this purpose, data of 2080 firm-year were used in the period of 2002-2016.  In this study, the effect of ownership on dividend policy was estimated as exogenous once and endogenous once again. The results were analyzed through software R by using ordinary data and matched data by PSM. In the both methods, the simple logistic regression and logistic panel model was fitted and Akaike's criterion was used for comparing the methods. It was observed that the p-value of institutional and corporate investors is less than 0.05, so these two variables have a significant effect on the dividend policy. For the control variables, observations shows that only net income and firm size doesn’t have a significant effect on dividend policy but other control variables have a significant effect. Finally, using PSM and matching of data can have a significant role in improving the fitted regression and its results are more significant than normal data.

Keywords: Dividend policy, the Endogeneity of ownership, concentrated ownership, Propensity Score Matching.

JEL Classifications: G32, G34, G35


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