ANALYSIS OF THE RELATIONSHIP BETWEEN THE ANNOUNCEMENTS OF DIVIDEND PAYOUT DECISIONS OF FOOTBALL CLUBS AND THE RETURNS OF SHARES USING THE EVENT ANALYSIS METHOD

Abstract

Purpose- Dividend is the share allocated by companies from the profit of the period to payout to their shareholder. The issue of dividend payouts seeks an answer to the question of how much of the profit obtained by companies in the fiscal year will be payed to shareholders. Investors act with two basic expectations when investing in stocks. The first is to earn dividend from the company's profit for the period, the second is to benefit from the increase in stock price and to earn capital gain. Joint stock companies may decide to payout dividends or not. In this context, announcing the decisions to payout or not to payout dividends is important for investors. Referred to as the four major football clubs in Turkey, Besiktas, Fenerbahce, Galatasaray and Trabzonspor's shares are traded on Borsa Istanbul (BIST). Like other BIST companies, clubs have investors and these investors deal with dividend payout decisions. The research aims to bridge the gap in the field. In the study, the relationship between the announcement of the dividend payout decisions of four big clubs operating in BIST and stock returns was examined. Methodology- In the study, five days before and five days after the clubs' Public Disclosure Platform (PDP) notifications were made, stock returns were analyzed using the event analysis method. 2009-2010 / 2019-2020 season data of the clubs were used in the research. Findings- According to the results obtained from the research, announcing that dividends will be payout has a significant and positive effect on stock returns, while announcing that no dividends will be payout has a significant and negative effect on stock returns. Conclusion- Research results are important in terms of revealing the effect of public disclosure announcements on performance. Accordingly, club managers can play a role in increasing financial performance by making the announcements fully, completely and on time within the framework of effective corporate management.

Keywords

• Dividend payout
• BIST
• football
• event study
• public disclosure platform

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