Is the free cash flow hypothesis valid in Turkey?

Borsa Istanbul Review

Ender Aykut Yilmaz¹  Eyup Kadioglu² 

[1] İller Bankası AŞ, Turkey;İstanbul Kemerburgaz University, Turkey;

关键词: Free cash flow hypothesis;    Agency cost;    Agency problem;    Dividend payout;   

DOI  :  10.1016/j.bir.2016.12.001

来源: DOAJ

【 摘 要 】

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.

【 授权许可】

Unknown