The impact of catering incentives on the dividend policy: Evidence from Turkish firms

Basit Öğe Kaydı
dc.authoridDurukan, M Banu / 0000-0002-3619-2732
dc.authoridEVRIM MANDACI, Pinar / 0000-0002-9805-9937
dc.authorscopusid35095649500
dc.authorscopusid44861244200
dc.authorscopusid6506663960
dc.authorwosidDurukan, M Banu/W-9663-2018
dc.contributor.authorTakmaz, Sefa
dc.contributor.authorEvrim Mandaci, Pınar
dc.contributor.authorDurukan, M. Banu
dc.date.accessioned2022-02-15T16:58:37Z
dc.date.available2022-02-15T16:58:37Z
dc.date.issued2021
dc.departmentBakırçay Üniversitesien_US
dc.description.abstractPurpose The purpose of this paper is to empirically analyse the propensity to pay dividends and investigate whether the catering theory is valid in an emerging market. Design/methodology/approach The sample of this study comprises listed firms on the stock market of Turkey, Borsa Istanbul, with 2,438 observations during the period 1999-2015. In line with previous studies in the literature, appropriate control variables are used that may have an impact on Turkish firms' dividend policy. Control variables are examined in the likelihood of paying dividends by using Fama-Macbeth (1973) style cross-sectional logistic regressions. In addition, the linkage between the dividend premium and the propensity to pay is revealed to test the validity of the catering theory. Findings The findings of the study confirm the tenets of the catering theory for Turkey. When a positive dividend premium exists, that is when investors demand dividend, firms cater them and distribute dividend; on the contrary, when there is no demand, firms prefer not to pay. The effect of catering incentives on the dividend policy provides useful information for managers because the catering theory claims that investors' demand for dividends has an impact on the valuation of firms. Originality/value In the aftermath of the 2001 financial crisis, Turkey implemented far-reaching reforms and policy initiatives to improve the efficiency of capital markets and to overcome the obstacles sourcing from their culture and civil law origin. With the adoption of these major economic and structural reforms, as a civil law origin country, Turkey has managed to ameliorate the protection of investors as in common law countries. Ferris et al. (2009) state that the catering theory is applicable to firms in common law countries but not in civil law countries. In addition, prior research is not so extensive regarding the impact of catering incentives on the dividend policy of firms in emerging markets. The results of the analyses suggest that the catering theory is valid for Turkey as a civil law origin emerging country, and to the best of authors' knowledge, this study is the first to test the catering theory in the Turkish capital markets.en_US
dc.identifier.doi10.1108/MF-04-2020-0215
dc.identifier.endpage914en_US
dc.identifier.issn0307-4358
dc.identifier.issn1758-7743
dc.identifier.issue7en_US
dc.identifier.scopus2-s2.0-85097627387en_US
dc.identifier.scopusqualityQ3en_US
dc.identifier.startpage897en_US
dc.identifier.urihttps://doi.org/10.1108/MF-04-2020-0215
dc.identifier.urihttps://hdl.handle.net/20.500.14034/438
dc.identifier.volume47en_US
dc.identifier.wosWOS:000599973400001en_US
dc.identifier.wosqualityN/Aen_US
dc.indekslendigikaynakWeb of Scienceen_US
dc.indekslendigikaynakScopusen_US
dc.language.isoenen_US
dc.publisherEmerald Group Publishing Ltden_US
dc.relation.journalManagerial Financeen_US
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanıen_US
dc.rightsinfo:eu-repo/semantics/closedAccessen_US
dc.subjectDividend policyen_US
dc.subjectDividend premiumen_US
dc.subjectPropensity to payen_US
dc.subjectCateringen_US
dc.subjectTurkeyen_US
dc.subjectInvestment Opportunity Seten_US
dc.subjectDisappearing Dividendsen_US
dc.subjectAgency Costsen_US
dc.subjectPay Dividendsen_US
dc.subjectOwnershipen_US
dc.subjectPropensityen_US
dc.subjectLiquidityen_US
dc.subjectBehavioren_US
dc.subjectFinanceen_US
dc.titleThe impact of catering incentives on the dividend policy: Evidence from Turkish firmsen_US
dc.typeArticleen_US

Dosyalar

Orijinal paket
Listeleniyor 1 - 1 / 1
Küçük Resim Yok
İsim:
The impact of catering incentives on the dividend policy.pdf
Boyut:
230.87 KB
Biçim:
Adobe Portable Document Format
Açıklama:
Tam Metin / Full Text
İndir

Koleksiyon

WoS İndeksli Yayınlar Koleksiyonu
Scopus İndeksli Yayınlar Koleksiyonu
Uluslararası Ticaret ve İşletmecilik Bölümü Koleksiyonu