The relationship of profit distribution policies and company value:Borsa istanbul application

In today's market, enterprises are aimed not only at increasing the profit to be obtained, but also at improving the value of the company. The maximum value of the company is very positive for both the company and the people and institutions that have a relationship with the company. With the increasing volume of stock market transactions developing in Turkey, the impact of dividend distribution policies on company value has also become an important issue. Depending on the investment, financing and profit distribution decisions of the companies, the market value of the company varies. The issue of how and even whether profit distribution policies affect stock value is controversial in the financial literature. Although there are many theories and empirical studies in the literature that try to explain dividend distribution policies, a consensus has not yet been reached on this issue. The "Dividend Riddle" has not yet been solved. The aim of in this study is to determine how the preferences of the firms that decide to distribute or not distribute their profits affect the firm value. For this purpose, companies were determined in the Bist Dividend25 Index and the relationship between the profit distribution policies of these companies and the firm value was examined. Panel regression analysis was applied to the obtained data. As a result of the analysis, it revealed that there is a positive significant relationship between the profit distribution of firms and the value of the firm. Key Words: Dividend Distribution, Stocks, Bist 100 Index.