1.
Saeid Jabbarzadeh Kangarlouei
– Department Of Accounting, Islamic Azad University, Iran
2.
Ali Hasanzadeh
– Department Of Accounting, Islamic Azad University, Iran
3.
Morteza Motavassel
– Department Of Accounting, Islamic Azad University, Iran
Abstract
The purpose of this study is to investigate the relationship between Life-cycle Theory (LCT) and Free Cash Flow (FCF)
hypothesis with dividend policy in listed firms in Tehran Stock Exchange (TSE). The sample of the research includes 90 firms listed in TSE
which is studied during the period of 2006-2010. The results show that there is a significant positive relationship between profitability (return
on assets), leverage and firm size with dividend policy. In addition, results indicate that there is a significant negative relationship between
investment opportunities and firms life cycle with dividend policy. Finally, findings highlight that there is not a significant relationship between
FCF and dividend policy. These findings support LCT but not FCF hypotheses.
