Investigating the Relationship between Financial Evaluation and Dividend Yield of the Companies Listed

Abstract

In the stock market, investors are always seeking high profits. They purchase what they regard as the best stocks with the highest amount of return. To what extent managers’ activities and objectives are in line with shareholders’ expectations, or to what extent their goals conform to stockholders’ profits, or how much managers were successful in creating value and wealth for shareholders are determined through performance evaluation. The present study
aims to investigate the correlation between economic and market value added and dividend yield of the companies listed on Tehran Stock Exchange. For this purpose, 87 companies among them were examined as research samples. The results showed no significant correlation between economic value-added and dividend yield. In addition, there is a positive and significant correlation between market value-added and dividend yield.