DETERMINATION OF THE COMPANIES SPECIFIC FACTORS AFFECTING ON DIVIDEND PAYOUT POLICY: AN APPLICATION ON THE ISTANBUL STOCK EXCHANGE-30 INDEX

Abstract

The aim of current study is to investigate the companies specific factors that determine dividends payout policy of all companies represent 12 sectors listed in the Istanbul Stock Exchange-30 index that have been dividend payout consistently. Current study considers of 11 variables, namely, dividend payout as dependent variable, profitability, liquidity, financial leverage, companies size companies age, earnings per share, growth opportunity, stock market value, stock transaction volume and free float rate. In this respect, to assess whether any significant relationship exists between dividend payout and certain variables by utilizing panel data analysis covering five-year period 2010-2015. Results revealed that earnings per share, cash ratio, stock market value and companies size are related positive regression and important relationship with dividend payout ratio while financial leverage ratio and the square of companies age are in a negative regression and important relationship. Coefficients of other variables are not statistically significant on dividend payout ratio. It said that the results of this study will help for companies and financial managers to understand which specific variables to focus on, in order to enable them to achieve greater dividend payout.