Earning Management and Dividend Policy among listed companies In Tehran Stock Exchange Kazemi Hosseina, Rostami Vahabb, Ghorbani Behzadc aDepartment of Accounting, Takestan Branch, Islamic Azad University, Takestan, Iran bDepartment of Economics and Social Science, Payame Noor University, Po Box 19395-3697, Tehran, Iran cDepartment of Accounting, Khodabandeh branch, Islamic Azad University, Khobabandeh, Iran Online published on 15 April, 2014. Abstract This paper seeks to trace the effect of earning management activities on dividend Policy among listed companies in Tehran Stock Exchange. In this regard, required data to test the research hypothesis was gathered from financial statements and board of directors’ report of a sample including 70 active companies in the stock exchange Tehran which selected by systematic sampling method for five years period along 2009 to 2013. Modified Jones’ Model (1995) which already used in Jahanzaib et al. (2012) has been applied as proxy of evaluating earning management activities and also Modified Lintner model (1956) and dividend payment ratio were applied as proxies of dividend policy. The findings of the hypothesis test which analyzed by multiple-linear Regression, Revealed there is no significant relation between earning management activities and dividend payment ratio while in the corporations with stable dividend policy, application of earning management activities is high and there is positive relation between them. This finding is compatible with the past findings of Gosh et al. (2005) whom showed in time of the increases of the earning permanence there is tendency to pay dividend also permanently. Top Keywords Earning Management activities, Dividend Policy, Discretionary Accruals, Modified Jones Model, Modified Lintner model. Top |