THE EFFECTS OF DIVIDEND DISTRIBUTION POLICIES ON FIRM VALUE: AN APPLICATION ON BIST FOOD BEVERAGE AND BIST CHEMICAL PETROL AND PLASTIC INDICES

The aim of this study is to investigate whether the dividend policies of companies in the BIST Food Beverage and BIST Chemical, Petrol and Plastic Indexes have an effect on the firm value. In this study dynamic panel data Two Stage System Generalized Moment Method proposed by Arellano and Bover, Blundell and Bond were used between 2010 and 2020, annual data from companies in the BIST Chemical, Petrol, Plastic, and BIST Food and Beverage indices were used in the study. In this research firm value is dependent variable. Dividend distribution status per share is included independent variable, debt/equity ratio, return on assets and return on equity are included as instrumental variables.It was determined that the dividend distribution policies in the BIST Food and Beverage indexes did not have a significant effect on the firm value. On the other hand, dividend distribution policies in BIST Chemical, Petrol, and Plastic index have a significant and negative effect on firm value. It has been observed that the instrument variables used in the study have a positive and significant relationship on the firm value.Although there are many studies in the literature on this subject, it has been seen that the dividend puzzle is continues. It is thought that this study will contribute to the literature since it has a larger and more up-to-date data set compared to other studies conducted in Turkey, and includes the comparative results of the two indices determined.