Roohollah Ghadimifardzanjani - MA student of financial management, Department of Accounting, Sari Branch Islamic Azad University, Sari , Iran
Khosro Faghani Makrani - Department of Accounting, assistant professor, Sari Branch Islamic Azad University, Sari , Iran

The present study is going to investigate about the effect of earnings quality on cash dividend within a sample of 150 firms enlisted in Tehran Stock Exchange during the 8 years period of time between 2006 and 2013 that has been chosen by using a simple random method. The research method is correlation type and it has used a binary logistic regression model. Results have shown that there has been a meaningful relationship between earnings quality and cash dividend. Also the research results showed that variables such as operating cash flows, firm size, debt ratio, and the ratio of earnings to asset have had a meaningful relationship with cash dividend. From among the variables above, the operating cash flow to total assets ratio has had the strongest relationship with cash dividend. After that, earnings quality has had the highest relationship with cash dividend. This shows that the sample firms first report the dividend through earnings management and then pay. Also the evidences showed that the higher ratio of earning to assets would result in higher probability of cash dividend. This ratio shows the efficiency and performance of management in using firm's assets. In other words, it can be claimed that whenever management's performance in using assets improves, cash dividend would increase. The research evidences show that the greater amount of firm size will result in increased cash dividend. This shows that big companies have more capability in cash dividend than small companies. Also the present research results show that whenever the debt ratio increases the probability of cash dividend is reduced.

earning quality, earning management, cash dividend, operating cash flow