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Determinants and stability of dividend payment: the case of Malaysian public-listed Shariah-compliant firms

The purpose of this paper was to examine the determinants and stability of dividend payments in Malaysia from 2007 to 2016. The purposes of this research were (1) to analyse the stability of dividend per share, (2) to examine the determinants of dividend yield, and (3) to examine the effect of d...

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Main Authors: Fauzias Mat Nor,, Nur Ainna Ramli,, Ainulashikin Marzuki,, Norfhadzilahwati Rahim,
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2020
Online Access:http://journalarticle.ukm.my/16895/1/39493-145640-1-PB.pdf
http://journalarticle.ukm.my/16895/
https://ejournals.ukm.my/pengurusan/issue/view/1366
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spelling my-ukm.journal.168952021-06-26T16:08:02Z http://journalarticle.ukm.my/16895/ Determinants and stability of dividend payment: the case of Malaysian public-listed Shariah-compliant firms Fauzias Mat Nor, Nur Ainna Ramli, Ainulashikin Marzuki, Norfhadzilahwati Rahim, The purpose of this paper was to examine the determinants and stability of dividend payments in Malaysia from 2007 to 2016. The purposes of this research were (1) to analyse the stability of dividend per share, (2) to examine the determinants of dividend yield, and (3) to examine the effect of dividend per share on the sustainable growth rate of Shariah-compliant firms in Malaysia. Static model and dynamic model estimated using Generalised Method of Moment were used in this research. The results indicated that the stable earnings per share can afford the firms to pay a larger dividend. Futhermore, the higher dividend from the previous year with the lower speed adjustment indicated high smoothing and stability of dividend payment. The results on determinants of the dividend yield revealed the five factors that are lagged dividend yield, firm size, sales growth, leverage, and market value to book value have a significant impact on dividend yield, with lagged dividend yield and firm size showing a significant positive effect, while sales growth, leverage, and market value to book value have a significant negative impact. In addition, the results indicated that dividend per share had a significantly positive impact on the sustainable growth rate. The results of this study are important for the management team of companies to decide an appropriate dividend policy for the company to maintain a stable dividend payment and have the financial health of a company, These results also provided the understanding of dividend policy behaviour in Malaysia, particularly on Malaysian public-listed Shariah-compliant firms. Penerbit Universiti Kebangsaan Malaysia 2020 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/16895/1/39493-145640-1-PB.pdf Fauzias Mat Nor, and Nur Ainna Ramli, and Ainulashikin Marzuki, and Norfhadzilahwati Rahim, (2020) Determinants and stability of dividend payment: the case of Malaysian public-listed Shariah-compliant firms. Jurnal Pengurusan, 60 . pp. 1-14. ISSN 0127-2713 https://ejournals.ukm.my/pengurusan/issue/view/1366
institution Universiti Kebangsaan Malaysia
building Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description The purpose of this paper was to examine the determinants and stability of dividend payments in Malaysia from 2007 to 2016. The purposes of this research were (1) to analyse the stability of dividend per share, (2) to examine the determinants of dividend yield, and (3) to examine the effect of dividend per share on the sustainable growth rate of Shariah-compliant firms in Malaysia. Static model and dynamic model estimated using Generalised Method of Moment were used in this research. The results indicated that the stable earnings per share can afford the firms to pay a larger dividend. Futhermore, the higher dividend from the previous year with the lower speed adjustment indicated high smoothing and stability of dividend payment. The results on determinants of the dividend yield revealed the five factors that are lagged dividend yield, firm size, sales growth, leverage, and market value to book value have a significant impact on dividend yield, with lagged dividend yield and firm size showing a significant positive effect, while sales growth, leverage, and market value to book value have a significant negative impact. In addition, the results indicated that dividend per share had a significantly positive impact on the sustainable growth rate. The results of this study are important for the management team of companies to decide an appropriate dividend policy for the company to maintain a stable dividend payment and have the financial health of a company, These results also provided the understanding of dividend policy behaviour in Malaysia, particularly on Malaysian public-listed Shariah-compliant firms.
format Article
author Fauzias Mat Nor,
Nur Ainna Ramli,
Ainulashikin Marzuki,
Norfhadzilahwati Rahim,
spellingShingle Fauzias Mat Nor,
Nur Ainna Ramli,
Ainulashikin Marzuki,
Norfhadzilahwati Rahim,
Determinants and stability of dividend payment: the case of Malaysian public-listed Shariah-compliant firms
author_facet Fauzias Mat Nor,
Nur Ainna Ramli,
Ainulashikin Marzuki,
Norfhadzilahwati Rahim,
author_sort Fauzias Mat Nor,
title Determinants and stability of dividend payment: the case of Malaysian public-listed Shariah-compliant firms
title_short Determinants and stability of dividend payment: the case of Malaysian public-listed Shariah-compliant firms
title_full Determinants and stability of dividend payment: the case of Malaysian public-listed Shariah-compliant firms
title_fullStr Determinants and stability of dividend payment: the case of Malaysian public-listed Shariah-compliant firms
title_full_unstemmed Determinants and stability of dividend payment: the case of Malaysian public-listed Shariah-compliant firms
title_sort determinants and stability of dividend payment: the case of malaysian public-listed shariah-compliant firms
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2020
url http://journalarticle.ukm.my/16895/1/39493-145640-1-PB.pdf
http://journalarticle.ukm.my/16895/
https://ejournals.ukm.my/pengurusan/issue/view/1366
_version_ 1703961605412225024
score 13.211869

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