• Title of article

    Is the free cash flow hypothesis valid in Turkey?

  • Author/Authors

    Kadioglu, Eyup İstanbul Kemerburgaz University, Turkey , Yilmaz, Ender Aykut İller Bankası AŞ, Turkey

  • Pages
    6
  • From page
    111
  • To page
    116
  • Abstract
    This study tests the validity of the free cash flow hypothesis in the context of firms traded on Borsa Istanbul. The study applies a panel regression to a data set composed of 1267 observations from 227 companies during the period 2008–2014. The results reveal a significant, negative correlation between dividends per share and free cash flow. Likewise, a significant, inverse relationship is found between leverage and free cash flow. Thus, the results support the free cash flow hypothesis.
  • Keywords
    Free cash flow hypothesis , Agency cost , Agency problem , Dividend payout
  • Journal title
    Borsa Istanbul Review
  • Serial Year
    2017
  • Full Text URL
    reader.elsevier.com/reader/sd/pii/S2214845016301272?token=979B85B2F351BB259E52433CA955F4E244107F1EE69D2B59ABFAF9BDFF5C4CA73FE603DE184FA82E36D0CC8640711190&originRegion=eu-west-1&originCreation=20210418072114
  • Record number

    2567072

    • Link To Document
    https://search.isc.ac/dl/search/defaultta.aspx?DTC=10&DC=2567072