Profitability and Leverage as Determinants of Dividend Policy: Evidence of Turkish Financial Firms

The purpose of this study is to investigate the impact of profitability and leverage ratios on the determination of dividend policy for Turkish financial firms listed on Borsa Istanbul. In order to do so, secondary longitudinal data were collected for the listed financial firms from the DataStream d...

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Main Author: Hariem Abdullah
Format: Article
Language:English
Published: Tishk International University 2021-11-01
Series:Eurasian Journal of Management & Social Sciences
Subjects:
Online Access:https://ejmss.tiu.edu.iq/index.php/ejmss/article/view/44
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author Hariem Abdullah
author_facet Hariem Abdullah
author_sort Hariem Abdullah
collection DOAJ
description The purpose of this study is to investigate the impact of profitability and leverage ratios on the determination of dividend policy for Turkish financial firms listed on Borsa Istanbul. In order to do so, secondary longitudinal data were collected for the listed financial firms from the DataStream database over the period 2008-2020. The financial crisis of 2007-2008 affected the sector undoubtedly. Thus, it is important to investigate how dividend policy behaves with debt level and level of profitability in the financial sector of developing countries after the well-known financial crisis.  The research expects that both profitability and leverage have a significant correlation with the dividend payout ratio. Consistent to the findings of the majority of the prior empirical studies, the results of this study found that both profitability and leverage are negatively associated with the dividend payout ratio.
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spelling doaj-art-c1c68b1cfb3f4be689756dda956a704f2025-08-20T03:08:57ZengTishk International UniversityEurasian Journal of Management & Social Sciences2708-177X2708-034X2021-11-0123153010.23918/ejmss.V2i3p1545Profitability and Leverage as Determinants of Dividend Policy: Evidence of Turkish Financial FirmsHariem Abdullah0Accounting Department, University of Sulaimani, Business and Management Department, Faculty of Administrative Sciences and Economics, Tishk International University, Kurdistan Region, Erbil, Iraq.The purpose of this study is to investigate the impact of profitability and leverage ratios on the determination of dividend policy for Turkish financial firms listed on Borsa Istanbul. In order to do so, secondary longitudinal data were collected for the listed financial firms from the DataStream database over the period 2008-2020. The financial crisis of 2007-2008 affected the sector undoubtedly. Thus, it is important to investigate how dividend policy behaves with debt level and level of profitability in the financial sector of developing countries after the well-known financial crisis.  The research expects that both profitability and leverage have a significant correlation with the dividend payout ratio. Consistent to the findings of the majority of the prior empirical studies, the results of this study found that both profitability and leverage are negatively associated with the dividend payout ratio.https://ejmss.tiu.edu.iq/index.php/ejmss/article/view/44dividend policyprofitabilityleveragefinancial firmsborsa istanbul
spellingShingle Hariem Abdullah
Profitability and Leverage as Determinants of Dividend Policy: Evidence of Turkish Financial Firms
Eurasian Journal of Management & Social Sciences
dividend policy
profitability
leverage
financial firms
borsa istanbul
title Profitability and Leverage as Determinants of Dividend Policy: Evidence of Turkish Financial Firms
title_full Profitability and Leverage as Determinants of Dividend Policy: Evidence of Turkish Financial Firms
title_fullStr Profitability and Leverage as Determinants of Dividend Policy: Evidence of Turkish Financial Firms
title_full_unstemmed Profitability and Leverage as Determinants of Dividend Policy: Evidence of Turkish Financial Firms
title_short Profitability and Leverage as Determinants of Dividend Policy: Evidence of Turkish Financial Firms
title_sort profitability and leverage as determinants of dividend policy evidence of turkish financial firms
topic dividend policy
profitability
leverage
financial firms
borsa istanbul
url https://ejmss.tiu.edu.iq/index.php/ejmss/article/view/44
work_keys_str_mv AT hariemabdullah profitabilityandleverageasdeterminantsofdividendpolicyevidenceofturkishfinancialfirms