DOI: 10.36347/sjebm.2015.v02i04.007

Pages: 362-368

The main objective of this study it to evaluate the impact of financial constraints resulting from dividends on investment policies in working capitaland fixed assets of listed companies in Tehran Stock Exchange Market. The research population firms listed in Tehran Stock Exchange Market during the years 2006 to 2011 was, the sample size of 110 companies after the screening. In this study, the financial constraints arising from dividends as independent variables were considered as policies in order to examine their impact on investment in working capital and fixed assets of the companies. This study employs combined data; the results of multiple regression analysis using the 95% confidence level show that the effected financial constraints resulting to the dividend on investment policy of investment in working capital and fixed assets of the company have a counter effect, the magnitude of this reverse effect on investment in working capital policies is higher.