Micro and macro factors affecting cash dividend distribution policies in companies: Panel data application on BIST manufacturing industry companies

A dividend is a value that is paid to the shareholders at the end of the period in return for their investment in the company. The dividend policy is the policy that determines the distribution of the net profit earned by the companies in retained earnings, shareholders, and reserve capital. There are many factors that affect dividend policies. Companies should take into account many of these variables when forming their dividend policies. Factors that affect dividend distribution decisions are divided into micro and macro variables. This study aims to identify the factors that affect the cash dividend distribution policies of the manufacturing companies listed on the Exchange Istanbul (BIST) Manufacturing Industry Index and the direction of these factors. In light of the findings obtained from the literature review, the models and hypotheses developed within the scope of micro and macro factors that affect the cash dividend distribution policies of the companies were tested with panel data analysis. In the study, the relationships between cash dividends and micro and macro factors were examined in the manufacturing industry sector over the period 2010-2020. The starting year of the period under study was chosen as 2010, as it is thought that the companies in the data set may have been cleansed of the effects of the 2008 global economic crisis. One of the basic limitations of the research is that the companies have consistently distributed dividends during the specified period. The companies in the data set consist of companies whose shares are continuously traded on the BIST Industrial Index and whose data are fully accessible. The data were tested with panel data analysis. The dependent variable of the study is the amount of net cash dividend distribution. The independent variables of the micro model are return on assets, earnings per share, Tobin Q Ratio, market value/book value, size, liquidity ratio, current ratio, financial leverage, foreign source maturity structure, long-term financial leverage, short-term financial leverage, beta, public float ratio, company's interest rate, asset structure, tax shield, financial failure rate, ownership concentration, net sales, tax and cash conversion period. The independent variables of the macro model are economic growth, inflation rate, interest rate, exchange rate, and Turkey's credit default swap premium (CDS). The findings show that the cash dividend policies of the companies are affected by the variables of return on assets, current ratio, company's interest rate, Tobin Q Ratio, and foreign source maturity structure. Furthermore, it has been determined that macroeconomic factors such as economic growth, inflation rate, interest rate, exchange rate, and Turkey's credit default swap premium (CDS) affect cash dividend distribution policies.