This study attempts to explore the effect of dividend policy on the stock prices of the companies in Turkey. A balanced panel data set has been formed with 102 companies listed on Borsa Istanbul Industrial Index (XUSIN) for the period 2004-2016. The results of the models used in the study show no statistically significant effect of gross dividend payout ratio, cash dividend payout ratio and their one-year lagged values on stock prices.
___
Al Shabibi, B. K., Ramesh, G., (2011). “An empirical study on the determinants of dividend policy in the UK”, International Research Journal of Finance and Economics, Vol.80, No.12, 105-120.
Arellano, M., (1987). “Practitioners corner: computing robust standard errors for within‐groups estimators”, Oxford Bulletin of Economics and Statistics, Vol.49, No.4, 431-434.
Batchelor, R., Orakcioglu, I., (2003). “Event-related GARCH: the impact of stock dividends in Turkey”, Applied Financial Economics, Vol.13, No.4, 295-307.
Bhattacharya, S., (1979). “Imperfect information, dividend policy, and the bird in the hand fallacy”, Bell Journal of Economics, Vol.10, No.1, 259-270.
Black, F., (1976). “The dividend puzzle”, Journal of Portfolio Management, Vol. 2, No.2, 5-8.
Black, F., Scholes, M., (1974). “The effects of dividend yield and dividend policy on common stock prices and returns”, Journal of Financial Economics, Vol.1, No.1, 1-22.
Froot, K.A., (1989). “Consistent covariance matrix estimation with cross-sectional dependence and heteroscedasticity in financial data”, Journal of Financial and Quantitative Analysis, Vol.24, No.3, 333-355.
Gordon, M. J., (1959). “Dividends, earnings, and stock prices”, The Review of Economics and Statistics, 99-105.
Gordon, M. J., (1963). “Optimal investment and financing policy”, The Journal of Finance, Vol.18, No.2, 264-272.
Hussainey, K., Oscar Mgbame, C., Chijoke-Mgbame, A. M., (2011). “Dividend policy and share price volatility: UK evidence”, The Journal of Risk Finance, Vol.12, No.1, 57-68.
Kapoor, S., (2009). “Impact of dividend policy on shareholders' value: A study of Indian firms”, Jaypee Institute of Information Technology, Doctoral Thesis, 1-39.
Konak, F., Kenderli, S., (2013). “Kar payı politikalarının hisse senedi fiyatı üzerindeki etkisi: BIST banka endeksi uygulaması”, 17. Finans Sempozyumu, 92-99.
Lintner, J., (1962). “Dividends, earnings, leverage, stock prices and the supply of capital to corporations”, The Review of Economics and Statistics, Vol.44, No.3, 243-269.
Litzenberger, R. H., Ramaswamy, K., (1979). “The effect of personal taxes and dividends on capital asset prices: theory and empirical evidence”, Journal of Financial Economics, Vol.7, No.2, 163-195.
Miller, M.H., Modigliani, F., (1961). “Dividend policy, growth, and the valuation of shares”, the Journal of Business, Vol.34, No.4, 411-433.
Nishat, M., Irfan, C.M., (2004). “Dividend policy and stock price volatility in Pakistan”, In Pide-19th Annual General Meeting and Conference, 13-15.
Pani, U., (2008). “Dividend policy and stock price behaviour in Indian corporate sector: a panel data approach”, Retrieved from Indian Institute of Technology: http://ssrn. com/abstract, 1216171.
Pekkaya, M., (2006). “Kar payı dağıtımının şirket değeri üzerine etkisi: IMKB 30 endeks hisselerine bir analiz”, Uluslararası Yönetim İktisat ve İşletme Dergisi, Vol.2, No.4, 183-209.
Ramadan, I. Z., (2013). “Dividend policy and price volatility. Empirical evidence from Jordan”, International Journal of Academic Research in Accounting, Finance and Management Sciences, Vol.3, No.2, 15-22.
Rogers, W., (1993). “Regression standard errors in clustered samples”, Stata Technical Bulletin, Vol.3. No.13, 19-23.
Rozeff, M.S., (1982). “Growth, beta and agency costs as determinants of dividend payout ratios”, Journal of Financial Research, Vol.5, No.3, 249-259.
Samad, F.A., Shaharudin, R.S., Ha S.G., (2007).“Does dividend stability provide a promising stock return? evidence from bursa malaysia”, 20th Australasian Finance and Banking Conference, 12-15.
Sealy, N. R., Knight, R. F., (1987). “Dividend policy, share price and return: A study on the Johannesburg Stock Exchange”, Investment Analysts Journal, Vol.16, No.29, 33-47.
Tatoğlu, F. Y., (2012). Panel veri ekonometrisi: stata uygulamalı. Beta Basım Yayın, Istanbul.
Walter, J. E., (1963). “Dividend policy: its influence on the value of the enterprise”, The Journal of Finance, Vol.18, No.2, 280-291.
Wooldridge, J. M., (2010). Econometric Analysis of Cross Section and Panel Data. The MIT Press, London.