Dividend behavior of industrial companies: Sample selection bias revisited

Download

1255-7592-1-PB.pdf

Date

2022-12

Author

Sayılgan, Güven
Doğan, Yasin

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

165
views

90
downloads

This paper aims to analyze the dividend decisions of industrial companies whose shares were traded in Borsa Istanbul between 2010 and 2019 with Heckman's two-step approach. In many countries like Turkey, official regulations state that equity companies have to take corporate dividend decisions with a two-stage process (whether or not to pay the dividend and dividend amount). Our study differs from previous studies because this is the first study analyzed the Borsa Istanbul sample with the Heckman model for understanding this two-stage dividend decision and averting potential sample selection bias. Results imply firm features influence the two steps of dividend decisions differently.

Subject Keywords

Dividend policy, Limited dependent variable, Heckman selection model

URI

http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/1255
https://hdl.handle.net/11511/101270

Journal

ODTÜ Gelişme Dergisi

Collections

Department of Economics, Article

Suggestions

OpenMETU
Core

An Examination of betas for Borsa İstanbul Koca, Onur; Oran, Adil; Department of Business Administration (2016) This study aims to investigate the Betas, which is called as systematic risk and introduced by Capital Asset Pricing Model (CAPM), of stocks traded in Borsa Istanbul (BIST). Issues about Beta have been examined for many years and mainly focus on its estimation and stability. These topics set up the core of this thesis. The closing prices of 203 eligible stocks between 2005 and 2015 are used in the work and data is collected from Thomson Reuters. The estimation of Beta is performed in four different methods,...
The effect of financial news on BIST stock prices: a machine learning approach Kanmaz, Medet; Küçükşenel, Serkan; Department of Economics (2018) This thesis examines the relationship between the price data of companies in different sectors in the Borsa Istanbul (BIST) stock exchange and the verbal data revealed in the financial news related to these companies. In this work, sentiment analysis, natural language processing and the effect of financial news on individual stock performances are studied with a simple and novel method. Sentiment analysis is created by automatically labelling the news for companies publicly traded in BIST as positive or neg...
Cross-section of stock returns on the İstanbul Stock Exchange Kayaçetin, Nuri Volkan; Güner, Zehra Nuray; Department of Business Administration (2003) The aim of this master thesis is to examine the explanatory power of some popular company-specific factors for the cross-section of average stock returns in the Istanbul Stock Exchange (ISE) for a period from 1992 to 2001. Factors tested in this thesis are firm size (MVE), book-to-market value of equity (BMR), debt-to-equity ratio (DER), sales-to-price ratio (SPR), gross profit-price ratio (GPPR) and dividend yield (DY).
A Test of multi-index asset pricing models: the case of Istanbul Stock Exchange Kalaç, Sırrı Selim; Danışoğlu, Seza; Department of Business Administration (2012) This study employs widely excepted asset pricing models to test their explanatory power in the context of Istanbul Stock Exchange listed companies between 1990 and 2010. The risk factors, beta, size, book-to-market equity, and momentum are used to form portfolios and their factor loadings are estimated. The results of this study are mostly in line with the previous academic research, and some unique attributes of the return generation mechanism of Istanbul Stock Exchange are reported.
Originating long-term fixed-rate Mortgages in developing economies: New evidence from Turkey Erol, Işıl; Çetinkaya, Özgenay (Orta Doğu Teknik Üniversitesi (Ankara, Turkey), 2009-12-1) This paper intends to analyze the recent developments to introduce and integrate mortgage markets into capital markets of Turkey. The Capital Market Board has recently prepared a legal framework not only for a proper mortgage system, but also for the eventual securitization of these mortgages. Turkish banks started to contract, for the first time ever, long-term fixed rate mortgages. The paper uses traditional option-pricing model to evaluate the current 10-year fixed rate mortgage (FRM) contracts with embe...

Citation Formats

G. Sayılgan and Y. Doğan, “Dividend behavior of industrial companies: Sample selection bias revisited,” ODTÜ Gelişme Dergisi, vol. 49, no. 2, pp. 323–341, 2022, Accessed: 00, 2023. [Online]. Available: http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/1255.