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Intra-industry comformity in dividend policy in Malaysia

Teh, Yen Kai (2015) Intra-industry comformity in dividend policy in Malaysia. Masters thesis, Universiti Utara Malaysia.

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Abstract

The topic on determinants of dividend policy has remained as a hot topic even though much relevant research had conducted. Every company wishes to increase their company's value by having a suitable dividend policy. The dividend policy of a company may be affected by other industry players due to the similar business environment. Besides, dividend decision can convey message to public about its performance which may indirectly affect a company's share price. Intra-industry effect on dividend policy was identified outside Malaysia. Since dividend is a crucial decision to a company, the same research should be conducted in Malaysia. The main purpose of this paper is to test the intra-industry effect on dividend policy in Malaysian market. In order to explore the influence of intra-industry effect, the logistic regression was performed by using the variables that may affect the probability of a company to pay dividend. The findings revealed a significant positive relationship between probability of a company paying a dividend and number of companies within plantation industry that pay a dividend. However, there is an insignificant relationship between probability of a company paying a dividend and number of companies within construction industry that pay a dividend. Overall, the findings support the view of intra-industry conformity in dividend policy in Malaysia. Thus, the intra-industry effect should be considered as one of the determinants in dividend policy. The findings are useful not only for investors but the company as well

Item Type: Thesis (Masters)
Uncontrolled Keywords: Dividend, intra-industry effect, Malaysia
Subjects: H Social Sciences > HG Finance
Divisions: Othman Yeop Abdullah Graduate School of Business
Depositing User: Mr. Badrulsaman Hamid
Date Deposited: 05 Apr 2016 04:56
Last Modified: 10 Apr 2016 06:40
URI: http://etd.uum.edu.my/id/eprint/5561

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