TY  - JOUR
T1  - The Effect of Price Bubbles in Stock Markets on Dividend Policies
AU - Ghahfarrokhi, Shirin Shams AU - Pikfalak, Jamshid AU - Nezhad, Mahmood Bakhshi 
JO  - International Business Management
VL  - 10
IS  - 19
SP  - 4490
EP  - 4497
PY  - 2016
DA  - 2001/08/19
SN  - 1993-5250
DO  - ibm.2016.4490.4497
UR  - https://makhillpublications.co/view-article.php?doi=ibm.2016.4490.4497
KW  - Price bubble
KW  -profit
KW  -stock profit
KW  -cash dividend
KW  -dividend policy
AB  - According to financial-behavioral perspective, managers make their dividend decisions based on the
signals received from the market, even if they know that the market price is taken away from the intrinsic value
of the shares. On the other hand, in the presence of bubbles in the stock market, stock valuation is not done
based on the actual performance of the companies and prices, as an indicator, cannot represent their
performance. In this regard, the present study aimed to investigate the effects of price bubbles on dividend
policies in companies listed in Tehran Stock Exchange from 2009-2014. Statistical tests were conducted on a
sample of 147 companies amongst 483 companies. The required data were collected from stock exchange official
websites and Rahavard-e-Novin Software. Then, the primary processing was carried out on the collected data
using Microsoft Excel and the obtained information were used to test models in the Eviews Software. The
empirical evidence obtained from hypotheses testing indicate that there are a significant inverse correlation
between price bubble and cash dividend and a significant direct correlation between price bubble and stock
dividend policy at 95% confidence level.
ER  -