Dividend Policy in Turkey: Survey Evidence from Borsa Istanbul Firms

H. Kent Baker, Erhan Kilincarslan, Alper Haktan Arsal

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

This study investigates the views of managers of firms listed on the Borsa Istanbul (BIST) on dividend policy. The survey evidence provides general support for Lintner’s partial adjustment model, signaling theory, catering, firm life cycle, and bird-in-the-hand hypotheses for explaining cash dividends. The results do not support the agency cost theory, substitution model of dividends, tax-related explanations, transaction cost theory, and residual dividend policy. The findings suggest that after implementing major economic and structural reforms and abolishing a mandatory dividend payment requirement, BIST managers follow similar dividend policy factors and patterns of dividend policy as managers in more developed countries.
LanguageEnglish
Pages43-57
Number of pages15
JournalGlobal Finance Journal
Volume35
Early online date29 Apr 2017
DOIs
Publication statusPublished - Feb 2018
Externally publishedYes

Fingerprint

Turkey
Dividend policy
Managers
Dividends
Economic reform
Firm life cycle
Factors
Partial adjustment model
Signaling theory
Cash dividends
Transaction cost theory
Agency costs
Substitution
Dividend taxes
Structural reforms
Developed countries
Birds
Payment

Cite this

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Dividend Policy in Turkey : Survey Evidence from Borsa Istanbul Firms. / Kent Baker, H.; Kilincarslan, Erhan; Arsal, Alper Haktan.

In: Global Finance Journal, Vol. 35, 02.2018, p. 43-57.

Research output: Contribution to journalArticle

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