Determinants of dividend policy of public listed companies in Malaysia

Purpose: This study investigates the determinants of the dividend policy of public listed companies in Malaysia. The factors examined in this study include earnings, cash flows, free cash flows, debt level, growth, investment, size, largest shareholders, risk, and lagged dividend. Design/methodolo...

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Main Authors:	Yusof, Yusniliyana, Ismail, Suhaiza
Format:	Article
Language:	English English
Published:	Emerald Group Publishing Limited 2016
Subjects:	HG4001 Financial management. Business finance. Corporation finance.
Online Access:	http://irep.iium.edu.my/50136/ http://irep.iium.edu.my/50136/ http://irep.iium.edu.my/50136/ http://irep.iium.edu.my/50136/1/2016RIBSYusniliyana.pdf http://irep.iium.edu.my/50136/4/50131_determinants%20of%20dividend_wos.pdf

id	iium-50136
recordtype	eprints
spelling	iium-501362017-06-20T08:46:46Z http://irep.iium.edu.my/50136/ Determinants of dividend policy of public listed companies in Malaysia Yusof, Yusniliyana Ismail, Suhaiza HG4001 Financial management. Business finance. Corporation finance. Purpose: This study investigates the determinants of the dividend policy of public listed companies in Malaysia. The factors examined in this study include earnings, cash flows, free cash flows, debt level, growth, investment, size, largest shareholders, risk, and lagged dividend. Design/methodology/approach: Data were obtained from the relevant databases and annual reports of the sampled companies. The study examines a total of 147 listed companies. In analyzing the data the study used fixed and random effects, pooled least square model, robust standard errors on fixed effects, and random effects models. Findings: The results revealed the five factors that are earnings, debt, size, investment, and largest shareholder have a significant influence on dividend policy with earnings, firm size and investment revealed to have a positive significant effect, whilst debt and large shareholders have a negative significant effect. Practical implications: The findings from this study are useful to the board of directors and management team of companies in deciding an appropriate dividend policy for the company. The results are also useful to shareholders in making investment decisions. Originality/value: The study extends empirical evidence on dividend policy determinants which are currently reported to be inconclusive. In addition, the study fills the lacuna in the existing literature by focusing on the issue of dividend policy determinants in the context of an emerging economy, namely Malaysia. Emerald Group Publishing Limited 2016 Article PeerReviewed application/pdf en http://irep.iium.edu.my/50136/1/2016RIBSYusniliyana.pdf application/pdf en http://irep.iium.edu.my/50136/4/50131_determinants%20of%20dividend_wos.pdf Yusof, Yusniliyana and Ismail, Suhaiza (2016) Determinants of dividend policy of public listed companies in Malaysia. Review of International Business and Strategy, 26 (1). pp. 88-99. ISSN 2059-6014 http://www.emeraldinsight.com/doi/pdfplus/10.1108/RIBS-02-2014-0030 10.1108/RIBS-02-2014-0030
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG4001 Financial management. Business finance. Corporation finance.
spellingShingle	HG4001 Financial management. Business finance. Corporation finance. Yusof, Yusniliyana Ismail, Suhaiza Determinants of dividend policy of public listed companies in Malaysia
description	Purpose: This study investigates the determinants of the dividend policy of public listed companies in Malaysia. The factors examined in this study include earnings, cash flows, free cash flows, debt level, growth, investment, size, largest shareholders, risk, and lagged dividend. Design/methodology/approach: Data were obtained from the relevant databases and annual reports of the sampled companies. The study examines a total of 147 listed companies. In analyzing the data the study used fixed and random effects, pooled least square model, robust standard errors on fixed effects, and random effects models. Findings: The results revealed the five factors that are earnings, debt, size, investment, and largest shareholder have a significant influence on dividend policy with earnings, firm size and investment revealed to have a positive significant effect, whilst debt and large shareholders have a negative significant effect. Practical implications: The findings from this study are useful to the board of directors and management team of companies in deciding an appropriate dividend policy for the company. The results are also useful to shareholders in making investment decisions. Originality/value: The study extends empirical evidence on dividend policy determinants which are currently reported to be inconclusive. In addition, the study fills the lacuna in the existing literature by focusing on the issue of dividend policy determinants in the context of an emerging economy, namely Malaysia.
format	Article
author	Yusof, Yusniliyana Ismail, Suhaiza
author_facet	Yusof, Yusniliyana Ismail, Suhaiza
author_sort	Yusof, Yusniliyana
title	Determinants of dividend policy of public listed companies in Malaysia
title_short	Determinants of dividend policy of public listed companies in Malaysia
title_full	Determinants of dividend policy of public listed companies in Malaysia
title_fullStr	Determinants of dividend policy of public listed companies in Malaysia
title_full_unstemmed	Determinants of dividend policy of public listed companies in Malaysia
title_sort	determinants of dividend policy of public listed companies in malaysia
publisher	Emerald Group Publishing Limited
publishDate	2016
url	http://irep.iium.edu.my/50136/ http://irep.iium.edu.my/50136/ http://irep.iium.edu.my/50136/ http://irep.iium.edu.my/50136/1/2016RIBSYusniliyana.pdf http://irep.iium.edu.my/50136/4/50131_determinants%20of%20dividend_wos.pdf
first_indexed	2023-09-18T21:10:50Z
last_indexed	2023-09-18T21:10:50Z
_version_	1777411241617129472

Determinants of dividend policy of public listed companies in Malaysia

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