EFFECT OF DIVIDEND ANNOUNCEMENTS ON FIRM VALUE IN THE BANKING SECTOR: EVIDENCE FROM ISTANBUL STOCK EXCHANGE

Devran Deniz; Hasan Aydın Okuyan

Makale detayları

EFFECT OF DIVIDEND ANNOUNCEMENTS ON FIRM VALUE IN THE BANKING SECTOR: EVIDENCE FROM ISTANBUL STOCK EXCHANGE

Yazarlar:

Devran Deniz | Hasan Aydın Okuyan

Yayıncı:

Bandirma Onyedi Eylul University

Ana Başlıklar:

Finans

Dergi:

Yönetim ve Ekonomi Araştırmaları Dergisi Vol.23 Issue 3, pp.1-18

Belge Tipi:

Makale

Yayın Tarihi:

10/2025

Belge Dili:

İngilizce

Document ID (Org No.):

2001360341

pISSN:

2148-029X

Anahtar kelimeler:

Özet:

 The literature suggests that cash dividend announcements typically have a positive effect on stock prices. However, there has been insufficient exploration into the price effect of dividend announcements specifically within the banking sector. Hence, this study investigates the price effect of dividend announcements among banks listed on the Istanbul Stock Exchange. Dividend announcements spanning from 2008 to 2022 were analyzed using the event study method. Abnormal returns of stocks during the three-day window surrounding the dividend announcements were employed as the dependent variable, while dividend change and dividend yield served as independent variables. The analysis revealed no significant relationship between abnormal returns and dividend changedividend yield variables. These findings remained consistent across both small and large-cap banks, indicating that dividend announcements do not affect stock prices. This observation is attributed to the likelihood of a low level of asymmetric information between investors and managers, stemming from heightened auditing standards and transparency within the banking sector.

 The literature suggests that cash dividend announcements typically have a positive effect on stock prices. However, there has been insufficient exploration into the price effect of dividend announcements specifically within the banking sector. Hence, this study investigates the price effect of dividend announcements among banks listed on the Istanbul Stock Exchange. Dividend announcements spanning from 2008 to 2022 were analyzed using the event study method. Abnormal returns of stocks during the three-day window surrounding the dividend announcements were employed as the dependent variable, while dividend change and dividend yield served as independent variables. The analysis revealed no significant relationship between abnormal returns and dividend changedividend yield variables. These findings remained consistent across both small and large-cap banks, indicating that dividend announcements do not affect stock prices. This observation is attributed to the likelihood of a low level of asymmetric information between investors and managers, stemming from heightened auditing standards and transparency within the banking sector.

 The literature suggests that cash dividend announcements typically have a positive effect on stock prices. However, there has been insufficient exploration into the price effect of dividend announcements specifically within the banking sector. Hence, this study investigates the price effect of dividend announcements among banks listed on the Istanbul Stock Exchange. Dividend announcements spanning from 2008 to 2022 were analyzed using the event study method. Abnormal returns of stocks during the three-day window surrounding the dividend announcements were employed as the dependent variable, while dividend change and dividend yield served as independent variables. The analysis revealed no significant relationship between abnormal returns and dividend changedividend yield variables. These findings remained consistent across both small and large-cap banks, indicating that dividend announcements do not affect stock prices. This observation is attributed to the likelihood of a low level of asymmetric information between investors and managers, stemming from heightened auditing standards and transparency within the banking sector.

 The literature suggests that cash dividend announcements typically have a positive effect on stock prices. However, there has been insufficient exploration into the price effect of dividend announcements specifically within the banking sector. Hence, this study investigates the price effect of dividend announcements among banks listed on the Istanbul Stock Exchange. Dividend announcements spanning from 2008 to 2022 were analyzed using the event study method. Abnormal returns of stocks during the three-day window surrounding the dividend announcements were employed as the dependent variable, while dividend change and dividend yield served as independent variables. The analysis revealed no significant relationship between abnormal returns and dividend changedividend yield variables. These findings remained consistent across both small and large-cap banks, indicating that dividend announcements do not affect stock prices. This observation is attributed to the likelihood of a low level of asymmetric information between investors and managers, stemming from heightened auditing standards and transparency within the banking sector.

Makale detayları

EFFECT OF DIVIDEND ANNOUNCEMENTS ON FIRM VALUE IN THE BANKING SECTOR: EVIDENCE FROM ISTANBUL STOCK EXCHANGE

Yazarlar:

Devran Deniz | Hasan Aydın Okuyan

Yayıncı:

Bandirma Onyedi Eylul University

Ana Başlıklar:

Finans

Dergi:

Yönetim ve Ekonomi Araştırmaları Dergisi Vol.23 Issue 3, pp.1-18

Belge Tipi:

Makale

Yayın Tarihi:

10/2025

Belge Dili:

İngilizce

Document ID (Org No.):

2001360341

pISSN:

2148-029X

Cash Dividend Announcements

Stock Prices

Banking Sector

Case Study

Sayı

Makale detayları

EFFECT OF DIVIDEND ANNOUNCEMENTS ON FIRM VALUE IN THE BANKING SECTOR: EVIDENCE FROM ISTANBUL STOCK EXCHANGE

Yazarlar: Devran Deniz | Hasan Aydın Okuyan

Yayıncı: Bandirma Onyedi Eylul University

Ana Başlıklar: Finans

Dergi: Yönetim ve Ekonomi Araştırmaları Dergisi Vol.23 Issue 3, pp.1-18

Belge Tipi: Makale

Yayın Tarihi: 10/2025

Belge Dili: İngilizce

Document ID (Org No.): 2001360341

pISSN: 2148-029X

Cash Dividend Announcements

Stock Prices

Banking Sector

Case Study

Sayı

Yazarlar:

Devran Deniz | Hasan Aydın Okuyan

Yayıncı:

Bandirma Onyedi Eylul University

Ana Başlıklar:

Finans

Dergi:

Yönetim ve Ekonomi Araştırmaları Dergisi Vol.23 Issue 3, pp.1-18

Belge Tipi:

Makale

Yayın Tarihi:

10/2025

Belge Dili:

İngilizce

Document ID (Org No.):

2001360341

pISSN:

2148-029X