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Corporate Governance and Dividend Payout Policy: Evidence from Borsa Istanbul

Year 2023, Volume: 8 Issue: 3, 482 - 497, 30.09.2023
https://doi.org/10.30784/epfad.1313103

Abstract

Corporate governance quality aims to ensure the efficiency and productivity of business operations, the reliability of reporting, and the protection of stakeholders' rights and interests. This study investigates whether the quality of corporate governance has any effect on the dividend policies of enterprises. For this purpose, the sample of the research consists of 70 companies that have a corporate governance rating and operate in Borsa Istanbul. The panel data analysis method is applied to determine the relationship between corporate governance rating and dividend policies of the enterprises. The empirical results show that corporate governance rating has a statistically significant and positive effect on the dividend policies of enterprises. Accordingly, it is understood that enterprises with better governance quality tend to pay stronger dividends. The analysis of the sub-components of corporate governance reveals that only the board of directors score has a positive effect on dividend policy. According to other empirical findings, size and profitability variables have a statistically significant and positive effect on dividend policy, while asset growth and leverage variables have a statistically significant and negative effect on dividend policy. At the same time, it is among the other empirical findings that enterprises tend to reduce dividend distributions during the COVID-19 period.

References

  • Adjaoud, F. and Ben-Amar, W. (2010). Corporate governance and dividend policy: Shareholders’ protectionor expropriation? Journal of Business Finance & Accounting, 37(5-6), 648-667. https://doi.org/10.1111/j.1468-5957.2010.02192.x
  • Ali, N., Rehman, M.Z., Ashraf, B.N. and Shear, F. (2022). Corporate dividend policies during the COVID-19 pandemic. Economies, 10(11), 263. https://doi.org/10.3390/economies10110263
  • Aydin, A.D. and Çavdar, Ş.Ç. (2015). Corporate governance and dividend policy: An empirical analysis from Borsa Istanbul Corporate Governance Index (XKURY). Accounting and Finance Research, 4(3), 66-76. https://doi.org/10.5430/afr.v4n3P66
  • Bnlemlih, M. (2019). Corporate social responsibility and dividend policy. Research in International Business and Finance, 47, 114-138. https://doi.org/10.1016/j.ribaf.2018.07.005
  • Cheung, A., Hu, M. and Schwiebert, J. (2016). Corporate social responsibility and dividend policy. Accounting and Finance, 58(3), 787-816. https://doi.org/10.1111/acfi.12238
  • Coşkun, M. and Sayılır, Ö. (2012). Relationship between corporate governance and financial performance of Turkish companies. International Journal of Business and Social Science, 3(14), 59-64. Retrieved from https://www.ijbssnet.com/
  • DeFond, M.L. and Francis, J.R. (2005). Audit research after Sarbanes-Oxley. A Journal of Practice and Theory, 24(1), 5-30. https://doi.org/10.2308/aud.2005.24.s-1.5
  • Erdaş, M.L. ve Siomes, E.B. (2020). Kurumsal yönetim çerçevesinde denetim mekanizmaları ve kar payı dağıtım politikası ilişkisi: Türkiye örneği. Journal of Economy Culture and Society, 62, 255-284. https://doi.org/10.26650/JECS2019-0120
  • Erdoğan, S.B., Danışman, G.Ö. and Demir, E. (2023). ESG performance and dividend payout: A channel analysis. Finance Research Letters, 55(A), 103827. https://doi.org/10.1016/j.frl.2023.103827
  • Gürbüz, A. ve Ergincan, O.Y. (2004). Kurumsal yönetim: Türkiye’deki durumu ve geliştirilmesine yönelik öneriler. İstanbul: Literatür Yayıncılık.
  • Hasan, F., Shafique, S., Das, B.C. and Shome, R. (2022). R&D intensity and firms dividend policy: Evidence from BRICS countries. Journal of Applied Accounting Research, 23(4), 846-862. https://doi.org/10.1108/JAAR-02-2022-0027
  • Jensen, M.C. (1986). Agency cost of free cash flow, corporate finance, and takeovers. American Economic Review, 76(2), 323-329. doi:10.2139/ssrn.99580
  • Jiang, F., Ma, Y. and Shi, B. (2017). Stock liquidity and dividend payouts. Journal of Corporate Finance, 42, 295-314. https://doi.org/10.1016/j.jcorpfin.2016.12.005
  • Jiraporn, P., Kim, J.C. and Kim, Y.S. (2011). Dividend payouts and corporate governance quality: An empirical investigation. The Financial Review, 46(2), 251-279. https://doi.org/10.1111/j.1540-6288.2011.00299.x
  • Khan, A. (2022). Ownership structure, board characteristics and dividend policy: Evidence from Turkey. Corporate Governance, 22(2), 340-363. https://doi.org/10.1108/CG-04-2021-0129
  • Krieger, K., Mauck, N. and Pruitt, S.W. (2021). The impact of the COVID-19 pandemic on dividends. Finance Research Letters, 42, 101910. https://doi.org/10.1016/j.frl.2020.101910
  • Li, K. and Zhao, X. (2008). Asymmetric information and dividend policy. Financial Management, 37(4), 673-694. https://doi.org/10.1111/j.1755-053X.2008.00030.x
  • Michaely, R. and Roberts M. (2006). Dividend smoothing, agency costs, and information asymmetry: Lessons from the dividend policies of private firms (Duke’s Fuqua School of Business Working Paper No. 2006). Retrieved from https://faculty.fuqua.duke.edu/corpfinance/papers/Roberts_PrivatePayout-2006%20Aug%2031.pdf
  • Mitton, T. (2004). Corporate governance and dividend policy in emerging markets. Emerging Markets Review, 5(4), 409-426. https://doi.org/10.1016/j.ememar.2004.05.003
  • Nyugen, H.V., Dang, H.N. and Dau, H.H. (2021). Influence of corporate governance on dividend policy in Vietnam. Journal of Asian Finance, Economics and Business, 8(2), 893-902. doi:10.13106/jafeb.2021.vol8.no2.0893
  • Pamukçu, F. (2011). Finansal raporlama ile kamuyu aydınlatma ve şeffaflıkta kurumsal yönetimin önemi. Muhasebe ve Finansman Dergisi, 50, 133-148. Retrieved from https://dergipark.org.tr/en/pub/mufad/
  • Renneboog, L. and Szilagyi P. (2006). How relevant is dividend policy under low shareholder protection? (ECGI Working Paper No. 128). Retrieved from https://www.zbw.eu/econis- archiv/bitstream/11159/578218/1/EBP071507078_0.pdf
  • Saeed, A. and Zamir, F. (2021). How does CSR disclosure affect dividend payments in emerging markets? Emerging Markets Review, 46, 100747. https://doi.org/10.1016/j.ememar.2020.100747
  • Setiawan, D. and Phua, L.K. (2013). Corporate governance and dividend policy in Indonesia. Business Strategy Series, 14(5-6), 135-143. https://doi.org/10.1108/BSS-01-2013-0003
  • Shamsabadi, H.A., Min, B.S. and Chung, R. (2016). Corporate governance and dividend strategy: Lessons from Australia. International Journal of Managerial Finance, 12(5), 583-610. https://doi.org/10.1108/IJMF-08-2015-0156
  • Shleifer, A. and Vishny, R.W. (1997). A survey of corporate governance. The Journal of Finance, 52(2), 737-783. https://doi.org/10.1111/j.1540-6261.1997.tb04820.x
  • Sürmen, Y. and Abdioğlu, H. (2020). Kurumsal yönetim anlayışı kapsamında Türkiye denetim standartlarının incelenmesi. Muhasebe ve Finans Tarihi Araştırmaları Dergisi, 18, 34-68. Retrieved from https://dergipark.org.tr/en/pub/muftad/
  • Tatoğlu, F.Y. (2021). Panel veri ekonometrisi: Stata uygulamalı. İstanbul: Beta Basım Yayım Dağıtım A.Ş.
  • Tran, Q.T. (2020). Corruption, agency costs and dividend policy: International evidence. The Quarterly Review of Economics and Finance, 76, 325-334. https://doi.org/10.1016/j.qref.2019.09.010
  • Turan, Ü. and Bayyurt, N. (2013). Kurumsal yönetim, mülkiyet yapısı ve performans. Finans Politik & Ekonomik Yorumlar, 50(585), 27-40. Retrieved from https://dergipark.org.tr/en/pub/fpeyd/
  • Vo, D.H. and Nyugen, V.T.-Y. (2014). Managerial ownership, leverage and dividend policies: Empirical evidence from Vietnam’s listed firms. International Journal of Economics and Finance, 6(5), 274-284. doi: 10.5539/ijef.v6n5p274
  • Yanti, N.W. and Dwiandra, A.N. (2019). The Effect of profitability in income smoothing practice with good corporate governance and dividend of payout ratio as a moderation variable. International Research Journal of Management, IT & Social Sciences, 6(2), 12-21. https://doi.org/10.21744/irjmis.v6n2.601
  • Yilmaz, M.K., Aksoy, M. and Khan, A. (2022). Moderating role of corporate governance and ownership structure on the relationship of corporate sustainability performance and dividend policy. Journal of Sustainable Finance & Investment, 1-30. https://doi.org/10.1080/20430795.2022.2100311

Kurumsal Yönetim ve Kâr Payı Dağıtım Politikası: Borsa İstanbul’da Bir Uygulama

Year 2023, Volume: 8 Issue: 3, 482 - 497, 30.09.2023
https://doi.org/10.30784/epfad.1313103

Abstract

Kurumsal yönetim kalitesi, ticari faaliyetlerin etkinliğini ve üretkenliğini, raporlamanın güvenilirliğini ve menfaat sahiplerinin hak ve menfaatlerinin korunmasını amaçlamaktadır. Bu çalışmada kurumsal yönetim kalitesinin işletmelerin temettü politikaları üzerinde herhangi bir etkisi olup olmadığı araştırılmaktadır. Bu amaçla, Borsa İstanbul’da faaliyet gösteren ve kurumsal yönetim derecelendirme notuna ulaşılan 70 işletme örneklem olarak seçilmiştir. İşletmelerin kurumsal yönetim derecelendirme notu ile temettü politikaları arasındaki ilişkiyi tespit etmek için panel veri analiz yöntemi uygulanmıştır. Ampirik sonuçlarda, kurumsal yönetim derecelendirme notunun işletmelerin temettü politikaları üzerinde istatistiksel açıdan anlamlı ve pozitif bir etkiye sahip olduğu sonucuna ulaşılmıştır. Buna göre daha iyi yönetim kalitesine sahip işletmelerin daha güçlü bir temettü ödeme eğiliminde olduğu anlaşılmaktadır. Kurumsal yönetimin alt bileşenleri üzerinden yapılan analiz sonucunda sadece yönetim kurulu skorunun temettü politikası üzerinde pozitif bir etkiye neden olduğu tespit edilmiştir. Elde edilen diğer ampirik bulgulara göre, büyüklük ve kârlılık değişkenlerinin işletmelerin temettü politikası üzerinde istatistiksel açıdan anlamlı ve pozitif bir etkiye sahip oldukları gözlemlenirken, varlık büyümesi ve kaldıraç değişkenlerinin işletmelerin temettü politikası üzerinde istatistiksel açıdan anlamlı ve negatif bir etkiye neden olduğu tespit edilmiştir. Aynı zamanda COVID-19 döneminde işletmelerin temettü dağıtımlarını azaltma eğiliminde olduğu elde edilen diğer ampirik bulgular arasındadır.

References

  • Adjaoud, F. and Ben-Amar, W. (2010). Corporate governance and dividend policy: Shareholders’ protectionor expropriation? Journal of Business Finance & Accounting, 37(5-6), 648-667. https://doi.org/10.1111/j.1468-5957.2010.02192.x
  • Ali, N., Rehman, M.Z., Ashraf, B.N. and Shear, F. (2022). Corporate dividend policies during the COVID-19 pandemic. Economies, 10(11), 263. https://doi.org/10.3390/economies10110263
  • Aydin, A.D. and Çavdar, Ş.Ç. (2015). Corporate governance and dividend policy: An empirical analysis from Borsa Istanbul Corporate Governance Index (XKURY). Accounting and Finance Research, 4(3), 66-76. https://doi.org/10.5430/afr.v4n3P66
  • Bnlemlih, M. (2019). Corporate social responsibility and dividend policy. Research in International Business and Finance, 47, 114-138. https://doi.org/10.1016/j.ribaf.2018.07.005
  • Cheung, A., Hu, M. and Schwiebert, J. (2016). Corporate social responsibility and dividend policy. Accounting and Finance, 58(3), 787-816. https://doi.org/10.1111/acfi.12238
  • Coşkun, M. and Sayılır, Ö. (2012). Relationship between corporate governance and financial performance of Turkish companies. International Journal of Business and Social Science, 3(14), 59-64. Retrieved from https://www.ijbssnet.com/
  • DeFond, M.L. and Francis, J.R. (2005). Audit research after Sarbanes-Oxley. A Journal of Practice and Theory, 24(1), 5-30. https://doi.org/10.2308/aud.2005.24.s-1.5
  • Erdaş, M.L. ve Siomes, E.B. (2020). Kurumsal yönetim çerçevesinde denetim mekanizmaları ve kar payı dağıtım politikası ilişkisi: Türkiye örneği. Journal of Economy Culture and Society, 62, 255-284. https://doi.org/10.26650/JECS2019-0120
  • Erdoğan, S.B., Danışman, G.Ö. and Demir, E. (2023). ESG performance and dividend payout: A channel analysis. Finance Research Letters, 55(A), 103827. https://doi.org/10.1016/j.frl.2023.103827
  • Gürbüz, A. ve Ergincan, O.Y. (2004). Kurumsal yönetim: Türkiye’deki durumu ve geliştirilmesine yönelik öneriler. İstanbul: Literatür Yayıncılık.
  • Hasan, F., Shafique, S., Das, B.C. and Shome, R. (2022). R&D intensity and firms dividend policy: Evidence from BRICS countries. Journal of Applied Accounting Research, 23(4), 846-862. https://doi.org/10.1108/JAAR-02-2022-0027
  • Jensen, M.C. (1986). Agency cost of free cash flow, corporate finance, and takeovers. American Economic Review, 76(2), 323-329. doi:10.2139/ssrn.99580
  • Jiang, F., Ma, Y. and Shi, B. (2017). Stock liquidity and dividend payouts. Journal of Corporate Finance, 42, 295-314. https://doi.org/10.1016/j.jcorpfin.2016.12.005
  • Jiraporn, P., Kim, J.C. and Kim, Y.S. (2011). Dividend payouts and corporate governance quality: An empirical investigation. The Financial Review, 46(2), 251-279. https://doi.org/10.1111/j.1540-6288.2011.00299.x
  • Khan, A. (2022). Ownership structure, board characteristics and dividend policy: Evidence from Turkey. Corporate Governance, 22(2), 340-363. https://doi.org/10.1108/CG-04-2021-0129
  • Krieger, K., Mauck, N. and Pruitt, S.W. (2021). The impact of the COVID-19 pandemic on dividends. Finance Research Letters, 42, 101910. https://doi.org/10.1016/j.frl.2020.101910
  • Li, K. and Zhao, X. (2008). Asymmetric information and dividend policy. Financial Management, 37(4), 673-694. https://doi.org/10.1111/j.1755-053X.2008.00030.x
  • Michaely, R. and Roberts M. (2006). Dividend smoothing, agency costs, and information asymmetry: Lessons from the dividend policies of private firms (Duke’s Fuqua School of Business Working Paper No. 2006). Retrieved from https://faculty.fuqua.duke.edu/corpfinance/papers/Roberts_PrivatePayout-2006%20Aug%2031.pdf
  • Mitton, T. (2004). Corporate governance and dividend policy in emerging markets. Emerging Markets Review, 5(4), 409-426. https://doi.org/10.1016/j.ememar.2004.05.003
  • Nyugen, H.V., Dang, H.N. and Dau, H.H. (2021). Influence of corporate governance on dividend policy in Vietnam. Journal of Asian Finance, Economics and Business, 8(2), 893-902. doi:10.13106/jafeb.2021.vol8.no2.0893
  • Pamukçu, F. (2011). Finansal raporlama ile kamuyu aydınlatma ve şeffaflıkta kurumsal yönetimin önemi. Muhasebe ve Finansman Dergisi, 50, 133-148. Retrieved from https://dergipark.org.tr/en/pub/mufad/
  • Renneboog, L. and Szilagyi P. (2006). How relevant is dividend policy under low shareholder protection? (ECGI Working Paper No. 128). Retrieved from https://www.zbw.eu/econis- archiv/bitstream/11159/578218/1/EBP071507078_0.pdf
  • Saeed, A. and Zamir, F. (2021). How does CSR disclosure affect dividend payments in emerging markets? Emerging Markets Review, 46, 100747. https://doi.org/10.1016/j.ememar.2020.100747
  • Setiawan, D. and Phua, L.K. (2013). Corporate governance and dividend policy in Indonesia. Business Strategy Series, 14(5-6), 135-143. https://doi.org/10.1108/BSS-01-2013-0003
  • Shamsabadi, H.A., Min, B.S. and Chung, R. (2016). Corporate governance and dividend strategy: Lessons from Australia. International Journal of Managerial Finance, 12(5), 583-610. https://doi.org/10.1108/IJMF-08-2015-0156
  • Shleifer, A. and Vishny, R.W. (1997). A survey of corporate governance. The Journal of Finance, 52(2), 737-783. https://doi.org/10.1111/j.1540-6261.1997.tb04820.x
  • Sürmen, Y. and Abdioğlu, H. (2020). Kurumsal yönetim anlayışı kapsamında Türkiye denetim standartlarının incelenmesi. Muhasebe ve Finans Tarihi Araştırmaları Dergisi, 18, 34-68. Retrieved from https://dergipark.org.tr/en/pub/muftad/
  • Tatoğlu, F.Y. (2021). Panel veri ekonometrisi: Stata uygulamalı. İstanbul: Beta Basım Yayım Dağıtım A.Ş.
  • Tran, Q.T. (2020). Corruption, agency costs and dividend policy: International evidence. The Quarterly Review of Economics and Finance, 76, 325-334. https://doi.org/10.1016/j.qref.2019.09.010
  • Turan, Ü. and Bayyurt, N. (2013). Kurumsal yönetim, mülkiyet yapısı ve performans. Finans Politik & Ekonomik Yorumlar, 50(585), 27-40. Retrieved from https://dergipark.org.tr/en/pub/fpeyd/
  • Vo, D.H. and Nyugen, V.T.-Y. (2014). Managerial ownership, leverage and dividend policies: Empirical evidence from Vietnam’s listed firms. International Journal of Economics and Finance, 6(5), 274-284. doi: 10.5539/ijef.v6n5p274
  • Yanti, N.W. and Dwiandra, A.N. (2019). The Effect of profitability in income smoothing practice with good corporate governance and dividend of payout ratio as a moderation variable. International Research Journal of Management, IT & Social Sciences, 6(2), 12-21. https://doi.org/10.21744/irjmis.v6n2.601
  • Yilmaz, M.K., Aksoy, M. and Khan, A. (2022). Moderating role of corporate governance and ownership structure on the relationship of corporate sustainability performance and dividend policy. Journal of Sustainable Finance & Investment, 1-30. https://doi.org/10.1080/20430795.2022.2100311
There are 33 citations in total.

Details

Primary Language Turkish
Subjects Finance, Corporate Governance
Journal Section Makaleler
Authors

Gökhan Özer 0000-0002-3255-998X

İlhan Çam 0000-0002-3076-0639

Sedat Çerez 0000-0002-6443-6319

Publication Date September 30, 2023
Acceptance Date September 10, 2023
Published in Issue Year 2023 Volume: 8 Issue: 3

Cite

APA Özer, G., Çam, İ., & Çerez, S. (2023). Kurumsal Yönetim ve Kâr Payı Dağıtım Politikası: Borsa İstanbul’da Bir Uygulama. Ekonomi Politika Ve Finans Araştırmaları Dergisi, 8(3), 482-497. https://doi.org/10.30784/epfad.1313103