The Effects of Stock Dividend on Stock Return in Tehran Stock Exchange

Keywords: Stock Dividend , Return rate of share


  • Ebrahim Abbasi, Affiliation: Associate Professor at Alzahra University, Tehran, Iran;
  • Behrooz Ebrahimzadeh, Affiliation: Master expert in Finance and lecture at University of Payamenur, Germi, Ardebil, Iran;
  • Amir Mohammadzadeh, Affiliation: Department of Insurance & Financial Management, University of Tehran, Iran.
Pages:  11 : 16

This study is aimed at identifying the relationship between stock dividend issue and return rate of share of 100 firms from Tehran Stock Exchange during years 2007-2011 tending to issue stock dividend. Pearson correlation test was used to examine the relationship between stock dividend issues and return rate of share and results showed that there is no significant relationship between share return rate and the amount of stock dividend and also between stock dividend issue percentage and return rate of share.

JEL classification:  G120