Turkey on the public decision affecting dividend distribution in surface mining factors

Dividend policy is a principal subject of corporate finance. In this study, the factors that drive the dividend policies of the firms listed in BIST Industrials between 2009 and 2015 are examined. Using panel analysis, the effects of liquidity, leverage, growth opportunities, size, market-to-book ratio, profitability, sales growth, asset turnover, share price volatility, fixed asset ratio and foreign ownership on the decision to distribute dividends and dividend payout ratio are examined. The results indicate that the factors that drive the decision to distribute are different from the ones that drive the dividend payout ratio. Debt ratio and fixed asset ratio negatively affects the dividend distribution decision. On the other hand, while the change in the debt ratio, price-earnings ratio and asset turnover positively affects the dividend payout ratio, the effect of sales growth is negative. The results support signalling theory and residual value theory in the decision to distribute, while they support signalling theory in the dividend payout ratio decision.