The impact of dividend policy on future free cash flow Asadi Ashraf*, Tariverdi Yadollah** *Master of Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran **Department of Accounting, Assistant Professor, Central Tehran Banch, Islamic Azad University, Tehran, Iran Online published on 5 July, 2014. Abstract The main purpose of this research is to study the impact of dividend policy on future free cash flow. Thus, samples included of 98 of the accepted companies in Tehran Stocks Exchange were selected from (2007–2011). In the present research dividend policy was selected as a in depended variant and future free cash flow was selected as a dependent variant. There are the variants such as company size and the present free cash flow and investment opportunity set and financial leverage were considered as controllable variants for testing the hypothesis of the research the Regression model and Pierson index of correlation was used in %95. Of the research, in general, the dividend policy has a negative and meaningful effect, on future free cash flow so that by cash distribution among stockholders the future free cash flow would reduce. Future free cash flow has a positive and meaningful relation with investment opportunity set and size of company and present free cash flow it also has a negative relation with financial leverage Top Keywords Policy of dividend, present free cash flow, future free cash flow, financial leverage, investment opportunity set, size of company. Top |