The Factors Determining Dividend Policy of Financial Firms Listed on the Borsa Istanbul

This study examines the factors determining the dividend policy of financial firms in Turkey. Analysing a panel dataset of 80 financial firms listed on the Borsa Istanbul over the period 2009‒2016, the results reveal that profitability, debt, growth, firm size, liquidity and asset tangibility are the financial characteristics that have significant effects on dividend decisions. The findings also show that foreign shareholders are the only owners influencing financial firms in setting dividend payments, whereas board size, family members on the board and independent directors have significant impacts on dividend policies of financial corporations. Overall, the study results suggest that the major factors determining dividend policy decisions of financial firms in Turkey are similar to those of the industrial (non-financial) firms documented in the literature