Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

Investigating the impact of corporate governance quality on the relationship between information asymmetry and dividend payout.

Document Type : Original Article

Authors
1 Bachelor of Accounting, Ahvaz Girls' Technical and Vocational Training Institute, Ahvaz, Iran.
2 Master of Science in Financial Management, Jahannama Computer Higher Education Institute, Tehran, Iran.
3 Bachelor of Science and Engineering in Food Industry, Payam Noor University of Dezful, Dezful, Iran.
4 Bachelor of Accounting, Ahvaz Girls' Technical and Vocational Training Institute, Ahvaz, Iran.
Abstract
Companies with good regulatory mechanisms are associated with lower degrees of information asymmetry and, consequently, fewer opportunities for adverse selection and moral hazard. To the extent that it is true, the effectiveness of corporate governance should have a significant impact on the payment of dividends by reducing information asymmetry among market participants. In every organization, the existence of effective corporate governance mechanisms is crucial in order to protect the rights of investors to access correct and fair information about the company. Therefore, considering the above, this study seeks to investigate whether the quality of corporate governance affects the relationship between information asymmetry and dividend payment in the Iranian capital market? The statistical population of the study is 128 companies listed on the Tehran Stock Exchange. Also, the time range includes 10 consecutive years from 2014 to 2019. The research hypothesis was tested using logistic regression and mixed data. The results showed that there is a significant and inverse relationship between information asymmetry and dividend payments. Other research findings also revealed that the quality of corporate governance moderates the relationship between information asymmetry and dividend payments.
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