A survey of managerial perspective on corporate dividend policy: evidence from Turkish listed firms

Narman Kuzucu

MPRA Paper from University Library of Munich, Germany

Abstract: This research paper examines the corporate dividend payout behaviours of non-financial firms from Istanbul Stock Exchange (Borsa Istanbul). Survey method is conducted to investigate managerial views on corporate dividend policy. The study investigates whether the evidence in Turkish stock market on dividend policy is similar to the European and the U.S. firms’ results which are reported earlier by other studies, and moreover in what extent Lintner’s (1956) findings on dividends is supported by today’s listed firms in an emerging market. The financial managers from 38 firms out of 216 non financial companies responded the survey. The results show that there is a significant positive relationship between cash dividends and earnings. Earnings are viewed as the most important factor in dividend decision like in European and the U.S. firms. Sustainable change in earnings, stability and level of future earnings, and the desire to distribute a proportion of earnings to shareholders are the common determinants of dividend policy. The majority of the respondents reports that they target dividends. Dividend yield is the most common measure for dividend targeting. Share repurchases are not viewed as alternative to dividend payouts unlike the U.S. firms. The study finds supporting evidences for bird-in the-hand and signalling hypotheses, and Lintner’s model.

Keywords: dividend policy; share repurchase; Borsa Istanbul; managerial perspective (search for similar items in EconPapers)
JEL-codes: G32 G35 (search for similar items in EconPapers)
Date: 2015-03-31
New Economics Papers: this item is included in nep-ara, nep-cfn and nep-cwa
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in International Journal of Research in Business and Social Science 2.4(2015): pp. 1-19

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:69801

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