Aharony, J. and Dotan, A. (1994), “Regular Dividend Announcements and Future Unexpected Earnings: An Empirical Analysis, Financial Review”, 29(1), 125-151.
Asquith, P. and Mullins D.W. (1983), “The Impact of Initiating Dividend Payments on Shareholders' Wealth, The Journal of Business”, 56(1), 77-96.
Bajaj, M., Vijh and A.M. (1990), “Dividend Clienteles and the Information Content of Dividend Changes, Journal of Financial Economics”, 26, 193-219.
Baker, H.K., Mukherjee, T.K. and Paskelian, O.G. (2006), “How Norwegian Managers View Dividend Policy, Global Finance Journal”, 17, 155–176.
Benartzi, S., Michaely, R. and Thaler, R. (1997), “Do Changes in Dividends Signal the Future or the Past?, The Journal of Fınance”, LII(3), 1007-1034.
Bhattacharya, S. (1979), “Imperfect Information, Dividend Policy, and "The Bird in the Hand" Fallacy, Bell Journal of Economics”, 10(1), 259-270.
Cebenoyan, A.Sa and Strahan, P.E. (2004), “Risk Management, Capital Structure and Lending at Banks, Journal of Banking & Finance”, 28, 19-43.
Deniz, D. (2019), “Temettü Dağıtımlarının Sinyalizasyon Etkisi: BİST Uygulaması”, Doktora Tezi, Balıkesir Üniversitesi Sosyal Bilimler Enstitüsü, Balıkesir.
Farsio, F. and Geary, A., Moser, J. (2004), “The Relationship Between Dividends and Earnings”, Journal For Economic Edicators, 4(4), 1-5.
Freeman, R.N., Ohlson, J.A. and Penman, S.H. (1982), Book Rate-of-Return and Prediction of Earnings Changes: An Empirical Investigation, Journal of Accounting Research, 20(2), 639-653.
Ghodrati, H. and Hashemi, A. (2014), “A study on Relationship Between Dividend Changes with Future Profitability”, Management Science Letters, 4, 1043-1050.
Grullon, G., Michaely, R., Benartzi, S. and Thaler, R. (2005), “Dividend Changes Do Not Signal Changes in Future Profitability”, Journal of Business, 78(5), 1659-1682.
Healy, P.M. and Palepu, K.G. (1987), “Earnings Information Conveyed by Dividend Initiations and Omissions”, Working Paper, Massachusetts Institute of Technology, Alfred P. Sloan of Management, 149-175.
Jung, B.C. (2007), “Information Asymmetry, Dividend Increases, Risk and Expected Future Earnings Changes”, Phd. Thesis, University of Colorado Department of Accounting, Colarado.
Kadıoğlu, E. ve Öcal, N. (2016), “Temettü Değişiklikleri ile Gelecekteki Kârlılık Arasındaki İlişkinin Test Edilmesi”, International Journal of Economics and Finance, 8(3), 196-205.
Kaymaz, Ö. (2010), “Şirket Temettü Politikasında Sinyalizasyon Teorisi ve Bir İmkb Uygulaması”, Doktora Tezi, İstanbul Üniversitesi Sosyal Bilimler Enstitüsü, İstanbul.
Kılıç, Y., Buğan, M.F. ve Özbezek, B.D. (2016), “Asimetrik Bilgi ve Sinyal Teorisi: Temettü ve Kazanç İlişkisinde Panel Nedensellik Yaklaşımı”, Gaziantep University Journal of Social Sciences, 15 (4), 1132-1145.
Lee, S.P., Isa, M. and Lim, W.L. (2012), “Dividend Changes and Future Profitability: Evidence From Malaysia”, Asian Academy of Management Journal of Accounting and Finance, 8(2), 93-110.
Ling, L. W. (2008), “Do Changes in Dividend Policy Signal The Future or the Past?”, Master’s Thesis, Graduate School of Business Faculty of Business and Accountancy University of Malaya, Kuala Lumpur.
Lintner, J. (1956), “Distribution of Incomes of Corporations Among Dividends, Retained Earnings, and Taxes”, The American Economic Review, 46(2), 97-113.
Lukose, P.J.J. and Rao, S.N. (2010), “Dividend Changes and Profitability: An Empirical Study of Indian Manufacturing Firms”, The IUP Journal of Applied Finance, 16(1), 1-25.
Miller, H.M. and Rock, K. (1985), “Dividend Policy Under Asymmetric Information”, The Journal of Finance, 40(4), 1031-1051.
Miller, M.H. and Modigliani, F. (1961), “Dividend Policy, Growth, and the Valuation of Shares”, The Journal of Business, 34 (4), 411-433.
Nissim, D. and Ziv, A. (2001), “Dividend Changes and Future Profitability, The Journal of Finance”, LVI(6), 2111-2134.
Tatoğlu, F. Y. (2016), Panel Veri Ekonometerisi. (Genişletilmiş 3. Baskı). İstanbul: Beta Yayınları.
Thanatawee, Y. (2009), “The Information Content of Dividends and Openmarket Share Repurchases: Theory and Evidence”, Phd. Thesis, University of Bath, School of Management.
Özvar, K. ve Ersoy, E. (2017), “Sahiplik Yapısının Kâr Dağıtım Kararlarına Etkisi: Panel Tobit Yöntemiyle Bir Analiz”, Finansal Araştırmalar ve Çalışmalar Dergisi, Cilt: 9, 17, 129-147.
Vieira, E. (2005), “Signalling with Dividends? The Signalling Effects of Dividend Change Announcements: New Evidence from Europe”, Phd Thesis, Universidade de Aveiro Management Department Rua Associação H. B. Voluntários, Portugal.
Watts, R. (1973), “The information Content of Dividends”, Journal of Business, 46, 191-211.
- Abstract viewed - 377 times
- PDF (Türkçe) downloaded - 237 times
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
© Business & Management Studies: An International Journal, 2019
How to Cite
INFORMATION CONTENT OF DIVIDEND (SIGNALLING THEORY): EVIDENCE FROM ISTANBUL STOCK EXCHANGE
Vol 7 No 4 (2019): BUSINESS & MANAGEMENT STUDIES: AN INTERNATIONAL JOURNAL
Submitted: Sep 3, 2019
Published: Sep 23, 2019
In this study, the validity of signalling theory (information content of dividend) in manufacturing industry and financial companies registered in Istanbul Stock Exchange was researched for the 2006-2018 data period. For this purpose, the relationship between the dividend changes of companies and the profit changes in the years following the dividend change was analysed. As a result of the analysis, a positive relationship was found between the dividend change and the profit change of the year after the dividend change. This relationship is valid for both large and small scale companies in the manufacturing industry sector and only for big scale companies in the financial sector. As a result, in Istanbul Stock Exchange's manufacturing industry and large-scale companies in the financial sector it has been found that the dividends contain information about companies’ the financial situation in the next years after dividend changes. However, no relationship was found between the dividend change and the profit change in the second year following the dividend change year. This shows that the profit change in the following year of the dividend change is permanent. This finding coincides with the phenomenon that managers make dividend changes only when they think that there are permanent changes in the financial position of the company.