On the Determinants of Corporate Dividend Policy: A Tobit Model Approach

Journal of Management and Economics Research, 2016

Posted: 8 Jun 2019

See all articles by Nida Abdioglu

Nida Abdioglu

Bandirma Onyedi Eylul University/ Faculty of Economics and Administrative Sciences

Date Written: 2016

Abstract

This study examines the factors that impact the dividend payout ratio of Turkish firms that are listed in Borsa Istanbul-100 Index for the period 2005-2013. Random-effect Tobit panel regression is used in order to investigate the determinants of dividend policy. According to the empirical results, firms which have higher cash flows, large firms, firms with high growth opportunities pay higher dividends. Although a significant coefficient for the managerial ownership can not be found for the whole sample, this variable negatively affects dividend payout ratio in dividend paying firms. Further, the sample is divided into two parts as low leverage firms and high leverage firms. The expected substitution among leverage, managerial ownership and dividend payments is investigated and a significant relation can not be found.

Keywords: Dividend Policy, Tobit Model, Borsa Istanbul

JEL Classification: G30, G32, G35

Suggested Citation

Abdioglu, Nida, On the Determinants of Corporate Dividend Policy: A Tobit Model Approach (2016). Journal of Management and Economics Research, 2016, Available at SSRN: https://ssrn.com/abstract=3392373

Nida Abdioglu (Contact Author)

Bandirma Onyedi Eylul University/ Faculty of Economics and Administrative Sciences ( email )

Balikesir, 10200
Turkey

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