A Study of the Relationship between Dividend and Finance, the Case of Companies Admitted into Tehran Stock Market

This study intends to review the relationship between dividend and finance and company's performance. This study covers the period between 2008 through 2013 and the subjects involve 83 companies, selected through random sampling at Tehran Stock Market. In this research Qtwbin is used as a measurement criterion for a company's performance. Moreover, to measure finance and raise in a company's obligations, such variables as company's size, finanncial leverage, dividend and agency costs as control variables, using multivariate regression, were examined. Findings showed that there was a significant relationship between the current-year's dividend and finance and company's performance and that when finance increased and performance improved there was a tendency toward an increase in dividend.