THE EFFECT OF DIVIDEND PAYMENTS MADE IN THE TIRE, IRON-STEEL, PHARMACEUTICAL AND CHEMICAL AND AUTOMOTIVE SECTOR ON THE PERFORMANCE OF THE COMPANY IN CHANGING MARKETS

Abstract

This study examined the effects of dividend payments made by companies operating in the tire, iron-steel, pharmaceutical and chemical and automotive sectors on firm performance. For this purpose, analyzes were made in order to determine whether the dividend distribution policies implemented by companies in the tire, iron-steel, pharmaceutical and chemical and automotive sectors included in the BIST 100 between the years 2000-2021 during market slowdowns and expansions have a significant relationship on firm performance. In the study, firm performance was measured by normalized rate of return on assets (ROA), rate of return on cash flows, Tobin's Q, total shareholder return, closing price, growth rate in assets, cumulative performance and earnings per share. In this study, multiple regression analysis was performed to determine the relationships between these dividend payments and firm performance variables. As a result of this study, it was determined that in the slowing market condition the dividend payments made by these companies increased the performance of these companies which are operating in these sectors except for the iron and steel sector; Also, in the growing markets condition, it was determined that the dividend payments made by these companies decreased the firm performance of these companies which are operating in these sectors except for the pharmaceutical and chemical sector. The difference of this study from other studies is due to the limited number of studies examining the effect of these divident payments on firm performance in the tire, iron-steel, pharmaceutical and chemical and automotive sectors in Turkey.