aDepartment of Accounting, College of Humanities, Islamic Azad University, Eslamshahr Branch, Eslamshahr, Iran
bDepartment of Accounting, College of Humanities, Islamic Azad University, Andimeshk Branch, Andimeshk, Iran
cDepartment of Public Management, College of Management, Islamic Azad University, Ramhormoz Branch, Ramhormoz, Iran
Online published on 27 March, 2014.
In the developed countries, the stock exchange is considered as strength tools for attracting small and big invests of people. The subject of profit division was as one of the most important financial issues in stock exchange that had the highest mental effect in the buying stock by investors. In this research we had attempted to explain the determinant factors of profit division policy and the main purpose of this research is to study presence of the relationship between profit payment policy of companies and investment chances and capital combination and profitability in the Iran capital market. The variables of this research are profit payment policy as dependent variable and profitability (assets yield and shareholders rights yield) and investment chances as independent variables. After screening all listed companies, 136 companies were selected as statistical society during 2005–2009 in 5 years and were tested and the results showed that there isn't any meaningful relationship between profit payment policy and profitability, shareholders rights and investment chances, therefore profit payment policy isn't a correct and suitable basis for evaluating the profitability and investment chances and it should be replaced with another index.
Profit payment, Profitability, Investment chances, Capital combination
