Year 2025,
Volume: 23 Issue: 3, 1 - 18, 15.10.2025
Devran Deniz
,
Hasan Aydın Okuyan
References
-
Aamir, M., Shah, S. and Zullfiqar, A. (2011) “Dividend Announcements and the Abnormal Stock Returns for the Event Firm and its Rivals”, Australian Journal of Business and Management Research, 1(8): 72-76.
-
Abdioğlu, N. and Deniz, D. (2015) “Borsa İstanbul’da İşlem Gören İmalat Sanayi Şirketlerinin Sermaye Yapılarının Firmaya Özgü Belirleyicileri”, Sosyoekonomi, 23(26): 195-213.
-
Aharony, J. and Dotan, A. (1994) “Regular Dividend Announcements and Future Unexpected Earnings: An Empirical Analysis”, Financial Review, 29(1): 125-151.
-
Aharony, J. and Swary, I. (1980) “Quarterly Dividend and Earnings Announcements and Stockholders' Returns: An Empirical Analysis”, The Journal of Finance, 35(1): 1-12.
-
Akbar, M. and Baig H. H. (2010) “Reaction of Stock Prices to Dividend Announcements and Market Efficiency in Pakistan”, The Labore of Journal of Economics, 15(1): 103-125.
-
Akhigbe, A. and Madura, J. (1996) “Dividend Policy and Corporate Performance”, Journal of Business Finance and Accounting, 23(9): 1267-1287.
-
Al Makawi, H. A. N., Rafferty, M. and Pillai, R. (2010), “Dividend Policy: A Review of Theories and Empirical Evidence”, International Bulletin of Business Administration, 9: 171-200.
-
Ali, M. B. A. and Chowdhury, T. A. (2010) “Effect of Dividend on Stock Price in Emerging Stock Market: A Study on the Listed Private Commercial Banks in DSE”, International Journal of Economics and Finance, 2(4): 52-64.
-
Ali, I. and Muhammad, N. Gohar, A. (2017) “Do Firms Use Dividend Changes to Signal Future Earnings? An Investigaation Based on Market Rationality”, International Journal of Economics and Finance, 9(4): 20-34.
-
Arslan, M. (2016) “Firmaların Temettü Ödemeleri ile Firma Değeri Arasındaki İlişki ve BİST100’de Bir Uygulama”, Yüksek Lisans Tezi, Pamukkale Üniversitesi, Sosyal Bilimler Enstitüsü, Denizli.
-
Asquith, P. and Mullins, D.W. (1983) “The Impact of Initiating Dividend Payments on Shareholders' Wealth, The Journal of Business, 56(1): 77-96.
-
Başkaya, H. (2015) “Halka Açık Firmalarda Kâr Payı Dağıtım Duyurularının Hisse Senedi Fiyatlarına Etkisinin Olay Etüdü ile Ölçülmesi”, Yüksek Lisans Tezi, Adnan Menderes Üniversitesi, Sosyal Bilimler Enstitüsü, Aydın.
-
Ben-David, I. (2010) “Dividend Policy Decisions”, New Jersey: John Wiley&SonsInc.
-
Berezinets, I., Ilina, Y., Smirnov, M. and Bulatova, L. (2017) “How DoesStock Market React to Dividend Surprises? Evidence from Emerging Markets of Indiaand Russia”, Journal of Asia-Pacific Business, 18(3): 153–179.
-
Bessler, W. and Nohel, T. (1995) “The Stock Market Reaction to Dividend Cuts and Omissions by Commercial Banks”, Journal of Banking & Finance, 20: 1485-1508.
-
Bhattarai, Y. R., (2016) “Effect of Dividend Payment on Stock Prices of Commercial Banks in Nepal: Panel Approach”, Economic Journal of Development Issues, 21 & 22(1-2): 55-68.
-
Black, F. (1976) “The Dividend Puzzle”, Journal of Portfolio Management, Special Issue: 8-12.
Borsa İstanbul, www.borsaistanbul.com
-
Deniz, D. (2019a) “Temettü Dağıtımlarının Sinyalizasyon Etkisi: BİST Uygulaması”, Doktora Tezi, Balıkesir Üniversitesi, Sosyal Bilimler Enstitüsü, Balıkesir.
-
Deniz, D. (2019b) “Temettünün Bilgi İçeriği (Sinyal Teorisi): Borsa İstanbul Uygulaması”, BMIJ, 7(4): 1530-1554.
Finnet Haber Expert Modülü, www.finnet.com.tr
-
Gunasekarage, A. and Power, D.M. (2006) “Anomalous Evidence in Dividend Announcement Effect, Managerial Finance”, 32(3): 209-226.
-
Günalp, B., Kadıoğlu, E. and Kılıç, S. (2010) “Nakit Temettü Bilgisinin Hisse Senedi Getirisi Üzerinde Önemli Bir Etkisinin Olup Olmadığının İMKB’de Test Edilmesi”, H.Ü. İktisadi ve İdari Bilimler Fakültesi Dergisi, 28(2): 47-69.
-
Hadri, K. (2000) “Testing for Stationarity in Heterogeneous Panel Data”, The Econometrics Journal, 3(2): 148-161.
-
Halife, H. and Korroum, S. (2023) “The Impact of Dividend Distribution Announcement on Stock Price: An Event Study At the Istanbul Stock Exchange”, Journal of Economics, Finance and Accounting, 10(2): 46-84.
-
Hernandez, M.D.B. (2017) “How Does the Norwegian Stock Market React to Unexpected Dividend Announcements?”, Master Thesis, BI Norwegian Business School, Oslo.
-
Iqbal, N., Ahmad, N., Ullah, H. and Abbas, A., (2014) “Effect of Dividend Announcement on Stock Prices in Banking industry of Pakistan”, International Letters of Socialand Humanistic Sciences, 35: 15-25.
-
Jaara, B. and Dalou, M. (2018) “Dividend Announcements of Banking Sector in Gulf Area; Pre, During and Post the Recent Global Financial Crisis”, International Journal of Economics and Finance, 10(6): 20-35.
-
Kadıoğlu, E., Telçeken, N. and Öcal, N. (2015) “Market Reaction to Dividend Announcement: Evidence from Turkish Stock Market”, International Business Research; 8(9): 83-94.
-
Kılıç, Y, Buğan, M and Özbezek, B. (2016) “Asymmetric Information and Signaling Theory: Panel Causality Approach on the Relationship between Dividends and Earnings”, Gaziantep University Journal of Social Sciences, 15(4): 1132-1145.
-
Kırbaş, A. (2015) “Temettü Duyurularının Hisse Senedi Getirilerine Olan Etkilerinin Analizi: Borsa İstanbul Şirketlerinde Bir Uygulama”, Doktora Tezi, Başkent Üniversitesi, Sosyal Bilimler Enstitüsü, Ankara.
-
Lazan, R., Abidin, R. A. Z. and Hassan, S. (2014) “Share Price Reaction to Dividends Announcement: A Study on the Listed Local Commercial Banks in Bursa Malaysia”, Proceedings of the Colloquium on Administrative Science and Technology. Springer, Singapore. https://doi.org/10.1007/978-981-4585-45-3_25.
-
Levin, A., Lin, C. F. and Chu, C. S. (2002) “Unit Root Tests in Panel Data: Asymptotic and Finite-Sample Properties”, Journal of Econometrics, Elsevier, 108(1): 1-24.
-
Litzenberger, R. H and Ramaswamy, K. (1982) “The Effects of Dividends on Common Stock Prices Tax Effects or Information Effects?”, The Journal of Finance, 37(2): 429-443.
-
Miller, M. H. and Modigliani, F. (1961) “Dividend Policy, Growth, and the Valuation of Shares”, The Journal of Business, 34(4): 411-433.
-
Muriungi, A. and Mwangi, M. (2020), “Dividend Theory and Empirical Evidence: A Theoretical Perspective”, Journal of Accounting, Finance and Auditing Studies, 6(3): 120-134.
-
Ross, S. A., Westerfield, R. W. ve Jordan, B. D. (2003) “Fundamantals of Coorporate Finance”, Sixth Edition. New York: McGraw-Hill.
-
Sakarya, Ş., Çalış, N. and Kayacan, M.A (2018) “Temettü Ödeme Duyurularının Hisse Senedi Fiyatlarına Etkisinin Ölçülmesi”: Borsa İstanbul’da Bir Uygulama, Sakarya İktisat Dergisi, 7(2): 92-106.
-
Samira, S. (2020), “A Comparative Study of the Market Reaction to Dividend Changes by Banking Firms and Industrial Firms”, Master of Business Administration, University of Dhaka.
-
Seyedminey, A. (2019) “Stock Price Reactions on NASDAQ Stock Exchange for Special Dividend Announcements”, Emerging Science Journal, 3(6).
-
Suwanna, T. (2012) “Impacts of Dividend Announcement on Stock Return”, Procedia –Socialand Behavioral Sciences, 40: 721–725.
-
Temiz, H. and Hacıhasanoğlu, T. (2017) “Temettü Politikası, Temettü Dağıtım Oranı ve Finansal Performans Arasındaki İlişkinin İncelenmesi”, Journal of Business Reseach Turk, 9(2): 133-149.
-
Vieira, E. (2005) “Signalling with Dividends? The Signalling Effects of Dividend Change Announcements: New Evidence from Europe”, Phd Thesis, Universidade de Aveiro Management Department Rua Associação H. B. Voluntários, Portugal.
-
White, H. (1980) “A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity”, Econometrica, 48(4): 817-838.
-
Yıldız, B. (2012) “Firmalarda Temettü Politikalarını Etkileyen Unsurlar: İmkb Sanayi İşletmeleri Üzerine Bir Panel Veri Uygulaması”, Doktora Tezi, Bülent Ecevit Üniversitesi, Sosyal Bilimler Enstitüsü, Zonguldak.
-
Yıldız, B., Gökbulut, R. İ. and Korkmaz, T. (2014) “Firmalarda Temettü Politikalarini Etkileyen Unsurlar: Bist Sanayi Işletmeleri Üzerine Bir Panel Veri Uygulamasi”, Ekonomik ve Sosyal Araştırmalar Dergisi, 10(1): 185-207.
-
Yılmaz, A. A. and Selçuk, E. A. (2010) “Information Content of Dividends: Evidence from Istanbul Stock Exchange”, International Business Research, 3(3): 126-132.
EFFECT OF DIVIDEND ANNOUNCEMENTS ON FIRM VALUE IN THE BANKING SECTOR: EVIDENCE FROM ISTANBUL STOCK EXCHANGE
Year 2025,
Volume: 23 Issue: 3, 1 - 18, 15.10.2025
Devran Deniz
,
Hasan Aydın Okuyan
Abstract
The literature suggests that cash dividend announcements typically have a positive effect on stock prices. However, there has been insufficient exploration into the price effect of dividend announcements specifically within the banking sector. Hence, this study investigates the price effect of dividend announcements among banks listed on the Istanbul Stock Exchange. Dividend announcements spanning from 2008 to 2022 were analyzed using the event study method. Abnormal returns of stocks during the three-day window surrounding the dividend announcements were employed as the dependent variable, while dividend change and dividend yield served as independent variables. The analysis revealed no significant relationship between abnormal returns and dividend change/dividend yield variables. These findings remained consistent across both small and large-cap banks, indicating that dividend announcements do not affect stock prices. This observation is attributed to the likelihood of a low level of asymmetric information between investors and managers, stemming from heightened auditing standards and transparency within the banking sector.
References
-
Aamir, M., Shah, S. and Zullfiqar, A. (2011) “Dividend Announcements and the Abnormal Stock Returns for the Event Firm and its Rivals”, Australian Journal of Business and Management Research, 1(8): 72-76.
-
Abdioğlu, N. and Deniz, D. (2015) “Borsa İstanbul’da İşlem Gören İmalat Sanayi Şirketlerinin Sermaye Yapılarının Firmaya Özgü Belirleyicileri”, Sosyoekonomi, 23(26): 195-213.
-
Aharony, J. and Dotan, A. (1994) “Regular Dividend Announcements and Future Unexpected Earnings: An Empirical Analysis”, Financial Review, 29(1): 125-151.
-
Aharony, J. and Swary, I. (1980) “Quarterly Dividend and Earnings Announcements and Stockholders' Returns: An Empirical Analysis”, The Journal of Finance, 35(1): 1-12.
-
Akbar, M. and Baig H. H. (2010) “Reaction of Stock Prices to Dividend Announcements and Market Efficiency in Pakistan”, The Labore of Journal of Economics, 15(1): 103-125.
-
Akhigbe, A. and Madura, J. (1996) “Dividend Policy and Corporate Performance”, Journal of Business Finance and Accounting, 23(9): 1267-1287.
-
Al Makawi, H. A. N., Rafferty, M. and Pillai, R. (2010), “Dividend Policy: A Review of Theories and Empirical Evidence”, International Bulletin of Business Administration, 9: 171-200.
-
Ali, M. B. A. and Chowdhury, T. A. (2010) “Effect of Dividend on Stock Price in Emerging Stock Market: A Study on the Listed Private Commercial Banks in DSE”, International Journal of Economics and Finance, 2(4): 52-64.
-
Ali, I. and Muhammad, N. Gohar, A. (2017) “Do Firms Use Dividend Changes to Signal Future Earnings? An Investigaation Based on Market Rationality”, International Journal of Economics and Finance, 9(4): 20-34.
-
Arslan, M. (2016) “Firmaların Temettü Ödemeleri ile Firma Değeri Arasındaki İlişki ve BİST100’de Bir Uygulama”, Yüksek Lisans Tezi, Pamukkale Üniversitesi, Sosyal Bilimler Enstitüsü, Denizli.
-
Asquith, P. and Mullins, D.W. (1983) “The Impact of Initiating Dividend Payments on Shareholders' Wealth, The Journal of Business, 56(1): 77-96.
-
Başkaya, H. (2015) “Halka Açık Firmalarda Kâr Payı Dağıtım Duyurularının Hisse Senedi Fiyatlarına Etkisinin Olay Etüdü ile Ölçülmesi”, Yüksek Lisans Tezi, Adnan Menderes Üniversitesi, Sosyal Bilimler Enstitüsü, Aydın.
-
Ben-David, I. (2010) “Dividend Policy Decisions”, New Jersey: John Wiley&SonsInc.
-
Berezinets, I., Ilina, Y., Smirnov, M. and Bulatova, L. (2017) “How DoesStock Market React to Dividend Surprises? Evidence from Emerging Markets of Indiaand Russia”, Journal of Asia-Pacific Business, 18(3): 153–179.
-
Bessler, W. and Nohel, T. (1995) “The Stock Market Reaction to Dividend Cuts and Omissions by Commercial Banks”, Journal of Banking & Finance, 20: 1485-1508.
-
Bhattarai, Y. R., (2016) “Effect of Dividend Payment on Stock Prices of Commercial Banks in Nepal: Panel Approach”, Economic Journal of Development Issues, 21 & 22(1-2): 55-68.
-
Black, F. (1976) “The Dividend Puzzle”, Journal of Portfolio Management, Special Issue: 8-12.
Borsa İstanbul, www.borsaistanbul.com
-
Deniz, D. (2019a) “Temettü Dağıtımlarının Sinyalizasyon Etkisi: BİST Uygulaması”, Doktora Tezi, Balıkesir Üniversitesi, Sosyal Bilimler Enstitüsü, Balıkesir.
-
Deniz, D. (2019b) “Temettünün Bilgi İçeriği (Sinyal Teorisi): Borsa İstanbul Uygulaması”, BMIJ, 7(4): 1530-1554.
Finnet Haber Expert Modülü, www.finnet.com.tr
-
Gunasekarage, A. and Power, D.M. (2006) “Anomalous Evidence in Dividend Announcement Effect, Managerial Finance”, 32(3): 209-226.
-
Günalp, B., Kadıoğlu, E. and Kılıç, S. (2010) “Nakit Temettü Bilgisinin Hisse Senedi Getirisi Üzerinde Önemli Bir Etkisinin Olup Olmadığının İMKB’de Test Edilmesi”, H.Ü. İktisadi ve İdari Bilimler Fakültesi Dergisi, 28(2): 47-69.
-
Hadri, K. (2000) “Testing for Stationarity in Heterogeneous Panel Data”, The Econometrics Journal, 3(2): 148-161.
-
Halife, H. and Korroum, S. (2023) “The Impact of Dividend Distribution Announcement on Stock Price: An Event Study At the Istanbul Stock Exchange”, Journal of Economics, Finance and Accounting, 10(2): 46-84.
-
Hernandez, M.D.B. (2017) “How Does the Norwegian Stock Market React to Unexpected Dividend Announcements?”, Master Thesis, BI Norwegian Business School, Oslo.
-
Iqbal, N., Ahmad, N., Ullah, H. and Abbas, A., (2014) “Effect of Dividend Announcement on Stock Prices in Banking industry of Pakistan”, International Letters of Socialand Humanistic Sciences, 35: 15-25.
-
Jaara, B. and Dalou, M. (2018) “Dividend Announcements of Banking Sector in Gulf Area; Pre, During and Post the Recent Global Financial Crisis”, International Journal of Economics and Finance, 10(6): 20-35.
-
Kadıoğlu, E., Telçeken, N. and Öcal, N. (2015) “Market Reaction to Dividend Announcement: Evidence from Turkish Stock Market”, International Business Research; 8(9): 83-94.
-
Kılıç, Y, Buğan, M and Özbezek, B. (2016) “Asymmetric Information and Signaling Theory: Panel Causality Approach on the Relationship between Dividends and Earnings”, Gaziantep University Journal of Social Sciences, 15(4): 1132-1145.
-
Kırbaş, A. (2015) “Temettü Duyurularının Hisse Senedi Getirilerine Olan Etkilerinin Analizi: Borsa İstanbul Şirketlerinde Bir Uygulama”, Doktora Tezi, Başkent Üniversitesi, Sosyal Bilimler Enstitüsü, Ankara.
-
Lazan, R., Abidin, R. A. Z. and Hassan, S. (2014) “Share Price Reaction to Dividends Announcement: A Study on the Listed Local Commercial Banks in Bursa Malaysia”, Proceedings of the Colloquium on Administrative Science and Technology. Springer, Singapore. https://doi.org/10.1007/978-981-4585-45-3_25.
-
Levin, A., Lin, C. F. and Chu, C. S. (2002) “Unit Root Tests in Panel Data: Asymptotic and Finite-Sample Properties”, Journal of Econometrics, Elsevier, 108(1): 1-24.
-
Litzenberger, R. H and Ramaswamy, K. (1982) “The Effects of Dividends on Common Stock Prices Tax Effects or Information Effects?”, The Journal of Finance, 37(2): 429-443.
-
Miller, M. H. and Modigliani, F. (1961) “Dividend Policy, Growth, and the Valuation of Shares”, The Journal of Business, 34(4): 411-433.
-
Muriungi, A. and Mwangi, M. (2020), “Dividend Theory and Empirical Evidence: A Theoretical Perspective”, Journal of Accounting, Finance and Auditing Studies, 6(3): 120-134.
-
Ross, S. A., Westerfield, R. W. ve Jordan, B. D. (2003) “Fundamantals of Coorporate Finance”, Sixth Edition. New York: McGraw-Hill.
-
Sakarya, Ş., Çalış, N. and Kayacan, M.A (2018) “Temettü Ödeme Duyurularının Hisse Senedi Fiyatlarına Etkisinin Ölçülmesi”: Borsa İstanbul’da Bir Uygulama, Sakarya İktisat Dergisi, 7(2): 92-106.
-
Samira, S. (2020), “A Comparative Study of the Market Reaction to Dividend Changes by Banking Firms and Industrial Firms”, Master of Business Administration, University of Dhaka.
-
Seyedminey, A. (2019) “Stock Price Reactions on NASDAQ Stock Exchange for Special Dividend Announcements”, Emerging Science Journal, 3(6).
-
Suwanna, T. (2012) “Impacts of Dividend Announcement on Stock Return”, Procedia –Socialand Behavioral Sciences, 40: 721–725.
-
Temiz, H. and Hacıhasanoğlu, T. (2017) “Temettü Politikası, Temettü Dağıtım Oranı ve Finansal Performans Arasındaki İlişkinin İncelenmesi”, Journal of Business Reseach Turk, 9(2): 133-149.
-
Vieira, E. (2005) “Signalling with Dividends? The Signalling Effects of Dividend Change Announcements: New Evidence from Europe”, Phd Thesis, Universidade de Aveiro Management Department Rua Associação H. B. Voluntários, Portugal.
-
White, H. (1980) “A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity”, Econometrica, 48(4): 817-838.
-
Yıldız, B. (2012) “Firmalarda Temettü Politikalarını Etkileyen Unsurlar: İmkb Sanayi İşletmeleri Üzerine Bir Panel Veri Uygulaması”, Doktora Tezi, Bülent Ecevit Üniversitesi, Sosyal Bilimler Enstitüsü, Zonguldak.
-
Yıldız, B., Gökbulut, R. İ. and Korkmaz, T. (2014) “Firmalarda Temettü Politikalarini Etkileyen Unsurlar: Bist Sanayi Işletmeleri Üzerine Bir Panel Veri Uygulamasi”, Ekonomik ve Sosyal Araştırmalar Dergisi, 10(1): 185-207.
-
Yılmaz, A. A. and Selçuk, E. A. (2010) “Information Content of Dividends: Evidence from Istanbul Stock Exchange”, International Business Research, 3(3): 126-132.