Micro-macro determinants of dividend policy: An econometric research on BIST Industry index

The objective of a business operating in the private sector is to generate profits at the end of each period to protect its assets and generate profits for the business owner. Profit allows companies to see their financial results periodically, to control business and transactions, and to continue on its way by growing. However, profit alone is not enough for the business to achieve its goals. At this point, the important thing is how the profit will be used. At this point, the important thing is how the profit will be used. The importance of the profit share concept emerges at this point. The dividend policy includes the decisions at what rate the net profit will be distributed to the businesses and at what rate it will be left as financing in the businesses. The dividend policy is very important in terms of the performance and targets of the enterprises. For this reason, it is an integral part of the financial policy of enterprises. In this study, the micro-macro determinants of the dividend policy in thecompanies operating in the BIST Industry sector in Turkey were investigated. It is aimed to explain which factors businesses pay attention to when making their decisions regarding dividend and how these factors affect dividend policy. For this reason, in this study, it is tested by panel data analysis method to determine the macro and micro variables that affect the dividend payments of 20 companies in the BIST Industry index between the years 2011-2020. As a result of the study, the effect of firm size, return on assets, inflation and interest rates on the cash dividend distribution rates of the enterprises was found to be positive, while the effects of financial leverage and liquidity ratio variables were found to be negative. It was concluded that the exchange rate and asset structure variables did not have a significant effect.