Dividend Payment and its Impact on the Value of Firms Listed on Istanbul Stock Exchange: A Residual Income Approach

Volume: 7 Number: 2 June 1, 2017
  • Akram Budagaga
International Journal of Economics and Financial Issues Cover
International Journal of Economics and Financial Issues
PDF Download
EN

Dividend Payment and its Impact on the Value of Firms Listed on Istanbul Stock Exchange: A Residual Income Approach

Abstract

The aim of this study is to examine the impact of dividend payments on the value of firms listed on the Istanbul Stock Exchange (ISE). The study has been adapted the Residual Income Approach based on Ohlson's (1995) valuation model. By testing different statistical techniques, fixed effect is applied on panel data for 44 firms listed on Istanbul Stock Exchange for the period 2007-2015, inclusive. The findings show a positive significant relationship between dividend payments and the value of firms. The results tend to support agency cost rather than the signaling hypothesis explanation. Moreover, the study suggests that the dividends irrelevance hypothesis is invalid in the case of firms listed on the (ISE).

Keywords

Details

Primary Language

English

Subjects

-

Journal Section

-

Authors

Akram Budagaga This is me

Publication Date

June 1, 2017

Submission Date

June 1, 2017

Acceptance Date

-

Published in Issue

Year 2017 Volume: 7 Number: 2

IZ

https://izlik.org/JA35EC64ZA

Cite

RIS / Bibtex
APA
Budagaga, A. (2017). Dividend Payment and its Impact on the Value of Firms Listed on Istanbul Stock Exchange: A Residual Income Approach. International Journal of Economics and Financial Issues, 7(2), 370-376. https://izlik.org/JA35EC64ZA
AMA
1.Budagaga A. Dividend Payment and its Impact on the Value of Firms Listed on Istanbul Stock Exchange: A Residual Income Approach. IJEFI. 2017;7(2):370-376. https://izlik.org/JA35EC64ZA
Chicago
Budagaga, Akram. 2017. “Dividend Payment and Its Impact on the Value of Firms Listed on Istanbul Stock Exchange: A Residual Income Approach”. International Journal of Economics and Financial Issues 7 (2): 370-76. https://izlik.org/JA35EC64ZA.
EndNote
Budagaga A (June 1, 2017) Dividend Payment and its Impact on the Value of Firms Listed on Istanbul Stock Exchange: A Residual Income Approach. International Journal of Economics and Financial Issues 7 2 370–376.
IEEE
[1]A. Budagaga, “Dividend Payment and its Impact on the Value of Firms Listed on Istanbul Stock Exchange: A Residual Income Approach”, IJEFI, vol. 7, no. 2, pp. 370–376, June 2017, [Online]. Available: https://izlik.org/JA35EC64ZA
ISNAD
Budagaga, Akram. “Dividend Payment and Its Impact on the Value of Firms Listed on Istanbul Stock Exchange: A Residual Income Approach”. International Journal of Economics and Financial Issues 7/2 (June 1, 2017): 370-376. https://izlik.org/JA35EC64ZA.
JAMA
1.Budagaga A. Dividend Payment and its Impact on the Value of Firms Listed on Istanbul Stock Exchange: A Residual Income Approach. IJEFI. 2017;7:370–376.
MLA
Budagaga, Akram. “Dividend Payment and Its Impact on the Value of Firms Listed on Istanbul Stock Exchange: A Residual Income Approach”. International Journal of Economics and Financial Issues, vol. 7, no. 2, June 2017, pp. 370-6, https://izlik.org/JA35EC64ZA.
Vancouver
1.Akram Budagaga. Dividend Payment and its Impact on the Value of Firms Listed on Istanbul Stock Exchange: A Residual Income Approach. IJEFI [Internet]. 2017 Jun. 1;7(2):370-6. Available from: https://izlik.org/JA35EC64ZA