UUM Electronic Theses and Dissertation
UUM ETD | Universiti Utara Malaysian Electronic Theses and Dissertation
FAQs | Feedback | Search Tips | Sitemap

The Determinants of Dividend Policy: Evidence from Malaysian Firms

Issa, Ayman I.F. (2012) The Determinants of Dividend Policy: Evidence from Malaysian Firms. Masters thesis, Universiti Utara Malaysia.

[thumbnail of AYMAN_I.F.ISSA.pdf] Text
Restricted to Registered users only

Download (696kB) | Request a copy
[thumbnail of AYMAN_I.F.ISSA.pdf]

Download (247kB) | Preview


The aim of this study is to investigate the relationship between dividend payout ratio in Malaysian firms with profitability, size, growth opportunities, free cash flow, business risk and market to book value. The paper used a sample of 284 firms listed on the Kuala Lumpur Stock Exchange (KLSE) from seven sectors viz., Consumer Products, Industrial Products, Construction, Finance, Technology, Properties, and Telecommunication. In order to decipher the relationships as stated above, multivariate regression analysis is used to test the hypotheses. The study found that at the pooled data level for All sectors, free cash flow, return on assets, return on equity, earning per share, market to book value and market capitalization have significant positive correlation with dividend payout ratio.
The variable Beta,however,has a strong negative correlation with dividend payout ratio. The findings however differ from sector to sector; results reflect that Market
capitalization; Beta, ROA and ROE are the common variables which have influence on DPR across various sectors except in technology sector where as the variable Market
capitalization is not significantly associated with DPR. Similarly, ROA, which is significant determinant variable of DPR in four sectors like Construction,Consumer Products, Properties and Telecommunication Sector,it has no influence on the dividend payout ratio of the companies in the Industrial, Technology and Finance sectors.

Item Type: Thesis (Masters)
Supervisor : Saha, Asish
Item ID: 3212
Subjects: H Social Sciences > HG Finance
Divisions: Othman Yeop Abdullah Graduate School of Business
Date Deposited: 26 Mar 2013 02:48
Last Modified: 19 Apr 2016 07:44
Department: Othman Yeop Abdullah Graduate School of Business
Name: Saha, Asish
URI: https://etd.uum.edu.my/id/eprint/3212

Actions (login required)

View Item
View Item