The Relationship between Stock Liquidity and Dividend Policies in Banks with Financial Constraints

Ghasemi, Ali; Nezafati Alamshiri, Maryam; Najafi, Yaghob; Hamidian, Mohsen

doi:10.22034/jifb.2024.462815.1571

The Relationship between Stock Liquidity and Dividend Policies in Banks with Financial Constraints

Document Type : Original Article

Authors

Ali Ghasemi ¹

Maryam Nezafati alamshiri ²

Yaghob Najafi ³

Mohsen Hamidian ⁴

¹ Department of Accounting, Takestan Institute of Higher Education, Qazvin, Iran.

² M.A of Financial Management, Semnan Branch, Islamic Azad University, Semnan, Iran

³ M.A of Accounting, Takestan Institute of Higher Education, Qazvin, Iran.

⁴ Department of Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran.

https://doi.org/10.22034/jifb.2024.462815.1571

Abstract

The present study investigates the relationship between stock liquidity and dividend policies in banks with financial constraints. The research method is descriptive-correlational and its design is experimental with a post-event approach. In order to test the research hypotheses, the researchers used multiple linear regression based on panel data and a combination of cross-sectional and time series. These included statistical and econometric methods to examine the effect of the independent variable on the dependent variable. Subsequently, in order to find answers to the research questions, the researchers collected data from 10 banks listed on the Tehran Stock Exchange, selected over a ten-year period (from the beginning of 2013 to the end of 2022), and performed the necessary statistical tests. The findings show that there is a significant positive relationship between stock liquidity and dividend policies, and a significant negative relationship between financial constraints and dividend policies. Also, financial constraints do not have a significant effect on the relationship between stock liquidity and dividend policies.

Keywords

Stock liquidity

Dividend policies

Financial constraints