Edited By Rasim Yilmaz, Günther Löschnigg, Hasan Arslan and Mehmet Ali Icbay
A Survey of Managerial Perspective on Corporate Dividend Policy: Evidence from Turkish Listed Firms
Dividends and dividend policy have been among the key research areas in finance theory. Starting from the Modigliani and Miller’s “MM” (1961) irrelevancy theorem, dividends have been a controversial issue. The assumptions of irrelevancy model inspired the other models, which seek to explain dividends, such as tax-effect hypothesis (Brennan, 1970), clientele effects (Elton and Gruber, 1970; Miller and Scholes, 1978), agency costs (Jensen and Meckling, 1976), signaling hypothesis (Ross, 1977; Bhattacharya, 1979; Miller and Rock, 1985), and behavioral explanations (Shefrin and Statman, 1984; Shefrin and Thaler, 1988).
Recently, researches on dividends have been focused on corporate payout behaviors more than the relevancy of dividends for a couple of decades. Fama and French (2001), DeAngelo, DeAngelo and Skinner (2004), Baker and Wurgler (2004) investigated whether dividends disappeared, reappeared or concentrated and how the firm specific characters affect dividend behaviors. Baker, Farrelly and Edelman (1985), Baker and Powell (2000), Da Silva, Goergen and Renneboog (2004), Brav, Graham, Harvey and Michaely (2005), Bancel, Bhattacharyya and Mittoo (2005), and Denis and Osobov (2008) examined the determinants of dividend payout policy, particularly using surveys on managerial perspectives. Those researches emphasized on the cross-country, legal system and other specific characteristics of firms on dividend decisions. Dong, Robinson and Veld (2005), Grinstein and Michaely (2005), and Graham and Kumar (2006) focused on investors’ preferences on dividends. They examined the effect of clienteles, retail versus institutional investors. All of those researches try to explain the motives and the reasons underlying...