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Dividend Policy of the ISE Industrial Corporations: The Evidence Revisited (1986-2007)

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  • Cahit Adaoglu

Abstract

The study aims to find out whether the disappearing dividends, the decline in the number of dividend payers, the size effect and the increasing dividend/earnings concentration found in several developed and emerging markets exist among the industrials traded in the ISE. The study also analyzes the effects of the reinstatement of mandatory dividend policy in 2003. Using univariate statistical tests, we detect a size effect as well as a high level but stable dividend/ earnings concentration. We find a significant decrease in the number of dividend payers, but we also detect an increasing level of real/nominal dividends driven by the high dividend/ earnings concentration and the increasing level of earnings. The reinstatement of the mandatory dividend policy regulation in 2003 has not been successful in changing the payout policy of industrials

Suggested Citation

  • Cahit Adaoglu, 2008. "Dividend Policy of the ISE Industrial Corporations: The Evidence Revisited (1986-2007)," Journal of BRSA Banking and Financial Markets, Banking Regulation and Supervision Agency, vol. 2(2), pages 113-135.
    • Handle: RePEc:bdd:journl:v:2:y:2008:i:2:p:113-135
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    Cited by:

    1. Zakayo S. Kisava & Fredynandy M. John, 2017. "Determinants of Dividends Payout and Policy Used In Emerging Economies: Evidence from Turkey," Business and Economic Research, Macrothink Institute, vol. 7(2), pages 362-374, December.
    2. Kent Baker, H. & Kilincarslan, Erhan & Arsal, Alper Haktan, 2018. "Dividend policy in Turkey: Survey evidence from Borsa Istanbul firms," Global Finance Journal, Elsevier, vol. 35(C), pages 43-57.
    3. Faruk Bostanci & Eyup Kadioglu & Guven Sayilgan, 2018. "Determinants of Dividend Payout Decisions: A Dynamic Panel Data Analysis of Turkish Stock Market," IJFS, MDPI, vol. 6(4), pages 1-16, November.

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    More about this item

    Keywords

    Dividends; Payout Policy; Disappearing Dividends; Dividend Types; Mandatory Dividend Policy; Concentration; Size Effect;
    All these keywords.

    JEL classification:

    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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