The Impact of Innovation and Dividend Distribution on Firm Value in Car and Metal Industries of Tehran Stock Exchange

Moradi Shahdadi, Khosro; Asadpoor Dezeki, Ali Mohammad

doi:10.22105/fbs.2023.185862

Document Type : Original Article

Authors

¹ Department of Financial Management, Qeshm Branch, Islamic Azad University, Qeshm, Iran.

² Industrial Management,, Production and Operations, Qeshm Branch, Islamic Azad University, Qeshm, Iran.

https://doi.org/10.22105/fbs.2023.185862

Abstract

Innovation involves a long process that is full of uncertainty and has a high probability of failure. Therefore, corporate innovation will face more serious financing constraints compared to traditional investments. In this case, the increase in the cost of financing reduces the investment opportunity of companies and then indirectly hinders the innovation of the company. Shareholders are always looking for returns and if companies create conditions to increase distribution, more shareholders will invest. Due to the importance of this issue, the present research has investigated the impact of innovation and dividend distribution on the firm value in the car and metal industries of the Tehran Stock Exchange during the years 2017 to 2021. The research method is correlation type based on regression test and based on panel data; In this regard, the statistical population of this research consists of all automotive and metal industries accepted in the Tehran Stock Exchange, which were selected by the method of systematic removal of 27 companies. The results of this research regarding the first hypothesis show that innovation has a direct and significant effect on the firm value. Also, the analysis of the second hypothesis showed that the dividend distribution has a direct and significant effect on the firm value.

Keywords

References

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Financial and Banking Strategic Studies

The Impact of Innovation and Dividend Distribution on Firm Value in Car and Metal Industries of Tehran Stock Exchange

References

References

Volume 1, Issue 3
December 2023
Pages 178-185

The Impact of Innovation and Dividend Distribution on Firm Value in Car and Metal Industries of Tehran Stock Exchange

References

References

Volume 1, Issue 3December 2023Pages 178-185

Volume 1, Issue 3
December 2023
Pages 178-185