EFFECTS OF DIVIDEND DISTRIBUTION ANNOUNCEMENTS ON THE MARKET PRICE OF SHARES: EMPIRICAL STUDY IN BIST 100

The aim of this study is to examine the effect of dividend announcements on market prices of stocks. 279 announcements between 2014 and 2016 belonging to the companies traded in the BIST 100 Index are used as the data set. In the study, event analysis is used. The study results show that the announcements made by companies that announce that they will not distribute dividends as there are no distributable profits, and companies that announce that they will not distribute dividends although they have distributable profit cause a negative abnormal return on share prices, although they differ according to the capital assets pricing model and the market model used to determine expected returns for the event study. Although there is a similar negative impact on companies reporting that they will distribute cash dividends, it has been found that the negative abnormal return for these companies is higher