Cash Dividend Policies and Capital Accumulation: An Empirical Analysis on Basis of Firms for Selected Markets-Wide

The effects of dividend policies on capital accumulation have been investigated in this study. The dataset used in the model consists of annual observations between 2010 and 2015 of 1117 non-bank firms selected from S&P 500, FTSE 100, Nikkei 225, CAC 40, SSEC, BOVESPA, NSEI and BIST 100 indexes. According to the results that are estimated by System in GMM, increases in the tendency of cash dividend payout of the firms affect capital accumulation as negative. Furthermore, on a firm basis, it has been determined that increases in the stock prices have a positive effect on the capital accumulation. Within this framework, it could be said that the effects of the price movements in the financial markets on the real economy are the same direction of the price movements