2017•Borsa Istanbul ReviewOpen access

Is the free cash flow hypothesis valid in Turkey?

Eyüp Kadıoğlu, Ender Aykut Yilmaz

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.

Open-access reader

About this research paper

What this paper is about

Why it matters

OpenAlex reports 55 citations for this work. Citation counts describe recorded attention and do not establish research quality.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

Key concepts: Free cash flow, Cash flow, Econometrics, Leverage (statistics), Operating cash flow, Panel data, Economics, Dividend