Staff View: Determinants of dividend payout ratio in the Malaysian steel industry / Suhaily Maizan Abdul Manaf, Nurul Syuhada Baharuddin and Nurul Fairus Bariah Yahya

Determinants of dividend payout ratio in the Malaysian steel industry / Suhaily Maizan Abdul Manaf, Nurul Syuhada Baharuddin and Nurul Fairus Bariah Yahya

The steel industry around the world is grappling with the effects of COVID-19. The demand growth in 2019 was slower than expected because of the continuing manufacturing recession in developed countries. In the first several months of 2020, other major steel manufacturers recorded a considerable red...

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Main Authors:	Abdul Manaf, Suhaily Maizan, Baharuddin, Nurul Syuhada, Yahya, Nurul Fairus Bariah
Format:	Article
Language:	English
Published:	2021
Subjects:	H Social Sciences (General) LG Individual institutions Statistical methods
Online Access:	https://ir.uitm.edu.my/id/eprint/56108/1/56108.pdf https://ir.uitm.edu.my/id/eprint/56108/ http://ejssh.uitm.edu.my
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id	my.uitm.ir.56108
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spelling	my.uitm.ir.561082022-03-02T07:59:59Z https://ir.uitm.edu.my/id/eprint/56108/ Determinants of dividend payout ratio in the Malaysian steel industry / Suhaily Maizan Abdul Manaf, Nurul Syuhada Baharuddin and Nurul Fairus Bariah Yahya Abdul Manaf, Suhaily Maizan Baharuddin, Nurul Syuhada Yahya, Nurul Fairus Bariah H Social Sciences (General) LG Individual institutions Statistical methods The steel industry around the world is grappling with the effects of COVID-19. The demand growth in 2019 was slower than expected because of the continuing manufacturing recession in developed countries. In the first several months of 2020, other major steel manufacturers recorded a considerable reduction in exports. As a result of this, numerous policies were implemented during the pandemic to support downstream demand. The need arises due to the importance of measuring dividends among shareholders. However, other existing variables need to be studied. Therefore, the rationale of this study is to conduct an empirical analysis on the determinants of the dividend payout ratio of the steel industry in Malaysia. The four determinants identified in this study are profitability, liquidity, leverage, and firm size. Secondary data was collected from 20 steel companies listed in Bursa Malaysia (stock exchange in Malaysia) from 2008 until 2017. Using the regression analysis and Random Effect Model, findings revealed that profitability and liquidity have a positive and significant effect on the dividend payout ratio of the steel industry. In the meantime, firm size shows a positive yet insignificant effect on the dividend payout ratio. Meanwhile, leverage was discovered to have a negative and negligible effect concerning the dividend payout ratio. This study suggests that finance managers must develop a clear dividend policy that specifies the percentage of dividends paid and retained to keep existing shareholders and attract new investors. Moreover, it will also assist them in keeping their existing investors for a longer length of time and attracting new investors to mobilize funds for future initiatives. 2021-09-27 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/56108/1/56108.pdf ID56108 Abdul Manaf, Suhaily Maizan and Baharuddin, Nurul Syuhada and Yahya, Nurul Fairus Bariah (2021) Determinants of dividend payout ratio in the Malaysian steel industry / Suhaily Maizan Abdul Manaf, Nurul Syuhada Baharuddin and Nurul Fairus Bariah Yahya. Journal of Social Sciences and Humanities, 5 (2). pp. 61-71. ISSN 2600-7274 http://ejssh.uitm.edu.my
institution	Universiti Teknologi Mara
building	Tun Abdul Razak Library
collection	Institutional Repository
continent	Asia
country	Malaysia
content_provider	Universiti Teknologi Mara
content_source	UiTM Institutional Repository
url_provider	http://ir.uitm.edu.my/
language	English
topic	H Social Sciences (General) LG Individual institutions Statistical methods
spellingShingle	H Social Sciences (General) LG Individual institutions Statistical methods Abdul Manaf, Suhaily Maizan Baharuddin, Nurul Syuhada Yahya, Nurul Fairus Bariah Determinants of dividend payout ratio in the Malaysian steel industry / Suhaily Maizan Abdul Manaf, Nurul Syuhada Baharuddin and Nurul Fairus Bariah Yahya
description	The steel industry around the world is grappling with the effects of COVID-19. The demand growth in 2019 was slower than expected because of the continuing manufacturing recession in developed countries. In the first several months of 2020, other major steel manufacturers recorded a considerable reduction in exports. As a result of this, numerous policies were implemented during the pandemic to support downstream demand. The need arises due to the importance of measuring dividends among shareholders. However, other existing variables need to be studied. Therefore, the rationale of this study is to conduct an empirical analysis on the determinants of the dividend payout ratio of the steel industry in Malaysia. The four determinants identified in this study are profitability, liquidity, leverage, and firm size. Secondary data was collected from 20 steel companies listed in Bursa Malaysia (stock exchange in Malaysia) from 2008 until 2017. Using the regression analysis and Random Effect Model, findings revealed that profitability and liquidity have a positive and significant effect on the dividend payout ratio of the steel industry. In the meantime, firm size shows a positive yet insignificant effect on the dividend payout ratio. Meanwhile, leverage was discovered to have a negative and negligible effect concerning the dividend payout ratio. This study suggests that finance managers must develop a clear dividend policy that specifies the percentage of dividends paid and retained to keep existing shareholders and attract new investors. Moreover, it will also assist them in keeping their existing investors for a longer length of time and attracting new investors to mobilize funds for future initiatives.
format	Article
author	Abdul Manaf, Suhaily Maizan Baharuddin, Nurul Syuhada Yahya, Nurul Fairus Bariah
author_facet	Abdul Manaf, Suhaily Maizan Baharuddin, Nurul Syuhada Yahya, Nurul Fairus Bariah
author_sort	Abdul Manaf, Suhaily Maizan
title	Determinants of dividend payout ratio in the Malaysian steel industry / Suhaily Maizan Abdul Manaf, Nurul Syuhada Baharuddin and Nurul Fairus Bariah Yahya
title_short	Determinants of dividend payout ratio in the Malaysian steel industry / Suhaily Maizan Abdul Manaf, Nurul Syuhada Baharuddin and Nurul Fairus Bariah Yahya
title_full	Determinants of dividend payout ratio in the Malaysian steel industry / Suhaily Maizan Abdul Manaf, Nurul Syuhada Baharuddin and Nurul Fairus Bariah Yahya
title_fullStr	Determinants of dividend payout ratio in the Malaysian steel industry / Suhaily Maizan Abdul Manaf, Nurul Syuhada Baharuddin and Nurul Fairus Bariah Yahya
title_full_unstemmed	Determinants of dividend payout ratio in the Malaysian steel industry / Suhaily Maizan Abdul Manaf, Nurul Syuhada Baharuddin and Nurul Fairus Bariah Yahya
title_sort	determinants of dividend payout ratio in the malaysian steel industry / suhaily maizan abdul manaf, nurul syuhada baharuddin and nurul fairus bariah yahya
publishDate	2021
url	https://ir.uitm.edu.my/id/eprint/56108/1/56108.pdf https://ir.uitm.edu.my/id/eprint/56108/ http://ejssh.uitm.edu.my
_version_	1726795670139961344
score	13.211869

Determinants of dividend payout ratio in the Malaysian steel industry / Suhaily Maizan Abdul Manaf, Nurul Syuhada Baharuddin and Nurul Fairus Bariah Yahya

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