Reflection of Dividend Yield on Stock Price an Empirical Study

Yunus Emre Kahraman and ÇaÄŸatay Mä°rgen

Fiscaoeconomia, 2025, issue 1

Abstract: This study examines the factors affecting the stock prices of companies included in the BIST DIVIDEND index using the panel data analysis method. In this context, it is aimed to evaluate the effects of distributed dividends on stock prices. The study used annual data of 20 companies between the years 2009-2023. The study analyzed the effects of variables such as dividend yield, retained earnings ratio, return on equity, total assets and net profit after tax on stock prices. The results show that dividend yield (DY) and retained earnings ratio (ER) have a statistically significant and negative effect on stock prices. On the other hand, return on equity (ROE), total assets (lnTA) and net profit after tax (lnNIAT) have a statistically significant and positive effect. The effect of interest (INT) and inflation (INF) variables was not found to be statistically significant. These findings emphasize the sensitivity of investors to dividend policies and the significant effect of companies' financial performance on stock prices. The study contributes to more conscious investment decisions and a better understanding of the determinants of stock prices.

Keywords: Dividend; Stock; Financial Market; Performance (search for similar items in EconPapers)
JEL-codes: C23 G10 G12 G30 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:fis:journl:250102

DOI: 10.25295/fsecon.1520562

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