Araştırma Makalesi

The Effect of Dividend Distribution Announcements on Stock Prices: Evidence from Borsa Istanbul

Cilt: 18 Sayı: 2 30 Aralık 2022
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The Effect of Dividend Distribution Announcements on Stock Prices: Evidence from Borsa Istanbul

Öz

This paper investigates firstly whether cash dividend distribution announcements in Turkish stock market have any effect on the stock returns or not. Data set is determined as companies listed in the Borsa İstanbul 100 Index between 2010 and 2019. To reveal the announcement effect, event study analysis is applied. Event study analysis shows that increasing dividend announcements have a significant positive impact on abnormal returns while decreasing and constant dividend announcements have a significant negative impact. Secondly, if the announcements of cash dividend distributions result in abnormal returns on the stock prices, the variables driving the abnormal returns are examined using cross-sectional regression analysis. Percentage change in dividend payment, dividend yield at the time of dividend change announcement, market value to book value ratio, company size, and return on asset ratio variables are tested whether they have explanatory power on abnormal returns or not. The results indicate that price to book ratio and return on asset ratio variables affect abnormal returns for cash dividend decrease announcements while dividend change, dividend yield, size and return on asset variables affect abnormal returns for cash dividend increase announcements. In all cash dividend announcements where cash dividend decrease, increase and no change announcements are considered, dividend yield and return on asset variables have an effect on abnormal returns.

Anahtar Kelimeler

Kaynakça

  1. Aharony, J., Falk, H., & Swary, I. (1988). Information Content of Dividend Increases: the Case of Regulated Utilities. Journal of Business Finance & Accounting, 401-414.
  2. Ahmed, H., & Javid, A. Y. (2009). The Determinants of Dividend Policy in Pakistan. International Research Journal of Finance and Economics, 29, 110-125.
  3. Altıok-Yılmaz, A., & Akben-Selçuk, E. (2010). Information Content of Dividends: Evidence from Istanbul Stock Exchange. International Business, 3(3), 126-132.
  4. Amidu, M., & Abor, J. (2006). Determinants of Dividend Payout Announcements in Ghana. The Journal of Risk Finance, 7(2), 136-145.
  5. Bajaj, M., & Vijh, A. M. (1990). Dividend Clienteles and the Information Content of Dividend Changes. Journal of Financial Economics, 26(2), 193-219.
  6. Bhattacharya, S. (1979). Imperfect Information, Dividend Policy, and "The Bird in the Hand" Fallacy. The Bell Journal of Economics, 10(1), 259-270.
  7. Bozos, K., Nikolopoulos, K., & Ghanamaruthy, R. (2011). Dividend Signaling under Economic Adversity: Evidence from the London Stock Exchange. International Review of Financial Analysis, 20(5), 364-374.
  8. Brown, S. J., & Warner, J. B. (1985). Using Daily Stock Returns: The Case of Event Studies. Journal of Financial Economics, 14(1), 3-31.

Ayrıntılar

Birincil Dil

İngilizce

Konular

İşletme

Bölüm

Araştırma Makalesi

Yayımlanma Tarihi

30 Aralık 2022

Gönderilme Tarihi

19 Ekim 2022

Kabul Tarihi

5 Aralık 2022

Yayımlandığı Sayı

Yıl 2022 Cilt: 18 Sayı: 2

Kaynak Göster

APA
Yolcu, M., & Öztürk, F. (2022). The Effect of Dividend Distribution Announcements on Stock Prices: Evidence from Borsa Istanbul. Ekonomik ve Sosyal Araştırmalar Dergisi, 18(2), 185-197. https://izlik.org/JA39NZ84YF
AMA
1.Yolcu M, Öztürk F. The Effect of Dividend Distribution Announcements on Stock Prices: Evidence from Borsa Istanbul. ESAD. 2022;18(2):185-197. https://izlik.org/JA39NZ84YF
Chicago
Yolcu, Mehmet, ve Feride Öztürk. 2022. “The Effect of Dividend Distribution Announcements on Stock Prices: Evidence from Borsa Istanbul”. Ekonomik ve Sosyal Araştırmalar Dergisi 18 (2): 185-97. https://izlik.org/JA39NZ84YF.
EndNote
Yolcu M, Öztürk F (01 Aralık 2022) The Effect of Dividend Distribution Announcements on Stock Prices: Evidence from Borsa Istanbul. Ekonomik ve Sosyal Araştırmalar Dergisi 18 2 185–197.
IEEE
[1]M. Yolcu ve F. Öztürk, “The Effect of Dividend Distribution Announcements on Stock Prices: Evidence from Borsa Istanbul”, ESAD, c. 18, sy 2, ss. 185–197, Ara. 2022, [çevrimiçi]. Erişim adresi: https://izlik.org/JA39NZ84YF
ISNAD
Yolcu, Mehmet - Öztürk, Feride. “The Effect of Dividend Distribution Announcements on Stock Prices: Evidence from Borsa Istanbul”. Ekonomik ve Sosyal Araştırmalar Dergisi 18/2 (01 Aralık 2022): 185-197. https://izlik.org/JA39NZ84YF.
JAMA
1.Yolcu M, Öztürk F. The Effect of Dividend Distribution Announcements on Stock Prices: Evidence from Borsa Istanbul. ESAD. 2022;18:185–197.
MLA
Yolcu, Mehmet, ve Feride Öztürk. “The Effect of Dividend Distribution Announcements on Stock Prices: Evidence from Borsa Istanbul”. Ekonomik ve Sosyal Araştırmalar Dergisi, c. 18, sy 2, Aralık 2022, ss. 185-97, https://izlik.org/JA39NZ84YF.
Vancouver
1.Mehmet Yolcu, Feride Öztürk. The Effect of Dividend Distribution Announcements on Stock Prices: Evidence from Borsa Istanbul. ESAD [Internet]. 01 Aralık 2022;18(2):185-97. Erişim adresi: https://izlik.org/JA39NZ84YF

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ISSN (Basılı) : 1306-2174 ISSN (Elektronik) : 1306-3553