Dividend-Yield Based Trading Rules: The Turkish Evidence
International Research Journal of Applied Finance, Forthcoming
31 Pages Posted: 1 Nov 2010 Last revised: 26 Apr 2017
Date Written: October 31, 2010
Recent research documents the superiority of dividend-yield based trading rules over a buy-and-hold strategy in the U.S. and Finland. We extend the international evidence on the superiority of dividend-yield based trading rules by examining whether the trading rules outperform a buy-and-hold strategy in Turkey. Specifically, we examine the returns of the ISE 30 index and trading rule portfolios that are components of the Istanbul Stock Exchange. Using a multiplicity of parametric and non-parametric tests, empirical results reveal that dynamic trading strategies do not outperform a passive strategy in Turkey.
Keywords: Dividend-yield based trading, Istanbul Stock Exchange
JEL Classification: G11, G14, G35
Suggested Citation: Suggested Citation