Asymmetric Effect of Inflation on Dividend Policy of Iran's Stocks Market

This paper surveys the asymmetric effect of inflation on dividend policy of Iran's stock market since 2005. Reaction of dividend policy maker to hedge shares against double-digit inflation of Iran depends on the company status in making a profit or loss. We use panel data approach to test the non-symmetric effect of inflation on the companies' decision in decreasing, increasing and maintaining of dividends. The results show that inflation has the positive effect on increasing and maintained dividend decision of companies. But it has the inverse and negative effect on decreasing a dividend. Inflation has significant contribution to the dividend policy maker decision according to the status of companies as making profit or loss.