Abstract

The most important way of equipping and optimal allocation of capital in the country is in the stock exchange, and recognizing the market and its elements and relationships existing in it is regarded as one of the important factors in the development of capital market. One of the important elements of this market is investors. Investors have various goals in investing in companies' stocks. The different interests and incentives of investors about the distribution and maintenance of company profits lead to their different expectation about the dividend policy. The purpose of this article is to investigate the role of representation theory and signaling theory in dividend policy in companies accepted in the Tehran Stock Exchange from the years 2014 to 2016. This research is a practical in respect of goal, and in respect of researcher, it is among the descriptive-survey researches which is correlation type in respect of relationship between variables. Data analysis was done through Eviews software. The research results showed that there is a positive and significant relationship between representation theory and dividend ratio, and also showed that there is a significant relationship between signaling theory and dividend ratio.