A Long-term Casual Nexus between Stock Price and Dividends: Empirical Evidence from the Accepted Firms in Tehran Stock Exchange

this world; though all the discussions are focused on the causal relationships in allthe scientific arguments. One of the methods to study the designed causal relationshipsobjectively is Granger causality test. This paper aims to investigate the longtermcausal relationship between the stock price and dividends. The statisticalpopulation includes ۱۸۰ active companies in Stock Exchange of Tehran during۲۰۱۰-۲۰۱۴. In order to analyze the achieved data statistically, the used specifiedmodel has been the regression model using the econometric data panel techniquesand to test the research hypotheses and find the specific relationships among thevariables, the descriptive-inferential statistics and Eviews software were used.Results indicated that the stock price is not due to the dividends; however, thedividends are the Granger causality of stock price. Also, the type of industry, firmgrowth index, and systematic risk index are of impact on the relationships betweenthe stock price and dividends.

Keywords:

stock price , Dividends , Systematic Risk , Firm growth , Granger causality test