ISSN 1300-1868
 

Original Research (Original Article) 


The Relationship Between Dividend Policies and Stock Returns: An Empirical Analysis for Selected Countries

Mustafa ÇAYIR, Nasuh Oğuzhan ALTAY.

Abstract
The effects of dividend policies on stock prices of firms have been investigated in this study. The dataset used in the study consists of annual observations between 2010 and 2015 of 1117 non-bank firms selected from S&P 500, FTSE 100, Nikkei 225, CAC 40, SSEC, BOVESPA, NSEI and BIST 100 indexes. According to the results that are estimated by System in GMM, increase in the cash dividend payout ratio of the firms affect their stock prices as positive. Thus, it might be said that obtained results from the paper support Signalling and the Information Content Approach and Bird in Hand Theory. On the other side, there isn’t enough evidence for validation of Irrelevance Theory.

Key words: Cash Dividend Policies, Stock Performance, System in GMM, Dividend Theories, Non-Bank Firms. JEL Codes: G32, G35, C33.



Temettü Politikaları ve Hisse Senedi Getirileri Arasındaki İlişki: Seçilmiş Ülkeler İçin Ampirik Bir Analiz

Ozet
Bu çalışmada temettü politikalarının firmaların hisse senedi fiyatları üzerindeki etkileri incelenmiştir. Çalışmada kullanılan veri seti, S&P 500, FTSE 100, Nikkei 225, CAC 40, SSEC, BOVESPA, NSEI ve BIST 100 endekslerinden seçilen 1117 banka dışı firmanın 2010-5 dönemi yıllık gözlemlerinden oluşmaktadır. Sistem GMM yöntemiyle tahmin edilen sonuçlara göre, firmaların nakit temettü ödeme oranının artması, ilgili firmaların hisse senedi fiyatlarını olumlu etkilemektedir. Buradan hareketle, çalışmada elde edilen bulguların Bilgi İçeriği ve Gösterge Yaklaşımı ile Eldeki Kuş Teorisi’ni desteklediği söylenebilir. Diğer yandan, İlintisizlik Teorisi’nin geçerliliğine yönelik yeterli kanıt bulunmamaktadır.

Anahtar Kelimeler: Nakit Temettü Politikaları, Hisse Senedi Performansı, Sistem GMM, Temettü Teorileri, Banka-Dışı Firmalar. JEL Kodları: G32, G35, C33.


 
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How to Cite this Article
Pubmed Style

CAYIR M, ALTAY NO. [The Relationship Between Dividend Policies and Stock Returns: An Empirical Analysis for Selected Countries]. Ekonomik Yaklasim. 2018; 29(109): 1-12. Turkish. doi:10.5455/ey.16699


Web Style

CAYIR M, ALTAY NO. [The Relationship Between Dividend Policies and Stock Returns: An Empirical Analysis for Selected Countries]. http://www.ekonomikyaklasim.org/?mno=292958 [Access: November 20, 2019]. Turkish. doi:10.5455/ey.16699


AMA (American Medical Association) Style

CAYIR M, ALTAY NO. [The Relationship Between Dividend Policies and Stock Returns: An Empirical Analysis for Selected Countries]. Ekonomik Yaklasim. 2018; 29(109): 1-12. Turkish. doi:10.5455/ey.16699



Vancouver/ICMJE Style

CAYIR M, ALTAY NO. [The Relationship Between Dividend Policies and Stock Returns: An Empirical Analysis for Selected Countries]. Ekonomik Yaklasim. (2018), [cited November 20, 2019]; 29(109): 1-12. Turkish. doi:10.5455/ey.16699



Harvard Style

CAYIR, M. & ALTAY, . N. O. (2018) [The Relationship Between Dividend Policies and Stock Returns: An Empirical Analysis for Selected Countries]. Ekonomik Yaklasim, 29 (109), 1-12. Turkish. doi:10.5455/ey.16699



Turabian Style

CAYIR, Mustafa, and Nasuh Oguzhan ALTAY. 2018. [The Relationship Between Dividend Policies and Stock Returns: An Empirical Analysis for Selected Countries]. Ekonomik Yaklasim, 29 (109), 1-12. Turkish. doi:10.5455/ey.16699



Chicago Style

CAYIR, Mustafa, and Nasuh Oguzhan ALTAY. "[The Relationship Between Dividend Policies and Stock Returns: An Empirical Analysis for Selected Countries]." Ekonomik Yaklasim 29 (2018), 1-12. Turkish. doi:10.5455/ey.16699



MLA (The Modern Language Association) Style

CAYIR, Mustafa, and Nasuh Oguzhan ALTAY. "[The Relationship Between Dividend Policies and Stock Returns: An Empirical Analysis for Selected Countries]." Ekonomik Yaklasim 29.109 (2018), 1-12. Print.Turkish. doi:10.5455/ey.16699



APA (American Psychological Association) Style

CAYIR, M. & ALTAY, . N. O. (2018) [The Relationship Between Dividend Policies and Stock Returns: An Empirical Analysis for Selected Countries]. Ekonomik Yaklasim, 29 (109), 1-12. Turkish. doi:10.5455/ey.16699