Stock market liquidity and firm dividend policy: Evidence from Tehran Stock Exchange

Article history: Received January 28, 2014 Accepted 20 June 2014 Available online June 26 2014 In this study, we examined the relationship between the dividend policy and shares liquidity under different criteria on 80 selected firms listed on Tehran Stock Exchange over the period 2007-2011. We used of Amivest, turnover, Gopalan and flow measures for shares liquidity. Using some statistical tests, the study has determined that there was not any meaningful relationship between Amivest liquidity with dividend policy. However, the study detected a reverse relationship between turnover liquidity and with dividend policy, and direct relationship between Gopalan liquidity with dividend policy and between flow liquidity with dividend policy. © 2014 Growing Science Ltd. All rights reserved.