Dividend collectors and negative cash dividends: evidence from Istanbul Stock Exchange Online publication date: Mon, 18-Mar-2013
by Berna Kirkulak
Afro-Asian J. of Finance and Accounting (AAJFA), Vol. 2, No. 2, 2010
Abstract: This paper examines the dividend-collecting firms and negative dividend payers listed on Istanbul Stock Exchange (ISE) from 1991 through 2006. Turkey used to be a unique country in terms of 50% mandatory cash dividend payment application, and this policy pushed some firms to create other ways to overcome liquidity problems. Among the dividend-paying firms, some dividend payers collected the distributed dividends back through rights issues. In some cases, the amount of rights issues exceeded the distributed dividends. Hence, this resulted in negative dividend payments. This paper provides a solid empirical basis to examine dividend-collecting firms and negative dividends. The findings of this paper show that dividend collectors, in particular negative-dividend-paying firms, started to decrease after the suspension of mandatory cash dividend payment policy in 1995. The results suggest that large firms with low earnings are likely to become negative dividend payers. Further, firms with high investment potential and higher short-term debt constraints tend to collect more dividends back.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the Afro-Asian J. of Finance and Accounting (AAJFA):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook