Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

The effect of the CEO's power on the probability of paying dividends, taking into account the role of cash flow fluctuations and company profitability

Document Type : Original Article

Authors
sari mohammad ali 1
mehdi khosravi alishah 2
1 Assistant Professor of Accounting Department, Mashhad Branch, Islamic Azad University, Mashhad, Iran.
2 Master's student in accounting, Mashhad Branch, Islamic Azad University, Mashhad, Iran.
Abstract
The main purpose of this research is the effect of the CEO's power on the probability of paying dividends, taking into account the role of cash flow fluctuations and company profitability. To conduct the research, the information of 118 companies admitted to the Tehran Stock Exchange in the years 1393 to 1400 was used, and statistical tests were performed in Eviews 12 software. To test the hypotheses of this research and determine the relationship between independent and dependent variables, econometric models have been used and the relevant hypotheses have been investigated using the panel multivariate regression method. The results of the research showed that the power of the CEO has a negative and significant relationship with the probability of paying dividends. On the other hand, the decrease in profitability moderates the relationship between the CEO's power and the probability of paying dividends. Also, high cash flow volatility does not moderate the relationship between the CEO's power and the probability of paying dividends.
Keywords
CEO's power
dividend payment
cash flow fluctuation
company's profitability

Subjects