A comparative analysis of the dividend distribution decision on the stock price effected by the different market

Payment of dividends is an important decision for firms within thecontext of investment and financing decisions as well as for investors whoshall earn a share of the profit besides capital gains.The type of dividend payments bear a critical significance, affectingthe market value of the firm, rate of growth and the wealth of theshareholders. This decision, important for both the firm and the shareholders,has been subject to research at various levels, both in Turkey and incountries; however, studies comparing the effect of this decision on bothparties have remained inadequate. The fact that there is no concurrence ofopinion in the literature regarding the effect of the dividend policies and typesof distribution, leads one to the conclusion that these topics constituteattractive areas of work.It is observed that, in recent years, the main aim of individual investorsin investing in stocks is to protect their savings against inflation, that the mostimportant problem regarding stocks is the instability of their prices and thatthe investors demand stable payment of dividends, distribution of shares inexchange for dividends and payment of dividends in cash.The type of dividend payments is constantly monitored both asregards firms and investors and it is a decision whose significance isincreasing due to developments in capital markets.In this study, the effect of the dividend payment decisions on the stockprices has been aimed to be evaluated by conducting a comparative analysis ofthe results from the stock markets of 15 countries.