The Determinants of Dividend Payout: Evidence from the Malaysian Property Market

Ong Chun Lin, Hassanudin Mohd Thas Thaker, Ahmad Khaliq, Mohamed Asmy Mohd Thas Thaker

Abstract


The paper aims to investigate the determinants of dividend payout among the Malaysian property companies. The sample size consists of 30 property listed companies on Bursa Malaysia. The data are generally obtained from the company’s annual report for the period of 2012 to 2016. The study employs multiple regression analysis to examine the influence of firms specific and macroeconomic variables on dividend payout. Result of the test shows that the dividend payout has a significant negative relationship with ownership structure and positive relationship on return on equity, quick ratio and GDP. The study instigates to enrich the literature on dividend determinants especially in the context of Malaysia.

Keywords


dividend; property market; Malaysia

Full Text:

PDF

References


Amarjit, G. Nahum, B., Rajendra, T. (2010). Determinants of Dividend Payout Ratios: Evidence from the United States. The Open Business Journal, 3(6), 08-14.

Ayman, I. Issa, F. (2012). The Determinants of Dividend Policy: Evidence from Malaysian Firms. Research Journal of Finance and Accounting, 6(18), 01 – 15.

Basse, T. Reddemann, S. (2011). Inflation and Dividend Policy of Us Firms. Managerial Finance, 37(1), 34 – 46.

Daniela, R. M. (2014). The causal relationship between dividends and economic growth: An analysis for Germany and the Netherlands. Available online http://scriptie-online.ube.uva.nl/document/585058. [Accessed on April 23, 2017]

Few, S.L., Mutalip, M.L.A., Shahrin, A.R., & Othman, M.S. (2008). Dividend Policy: Evidence from Public Listed Companies in Malaysia. International Review of Business Research Papers, 4(4), 208-222.

Gordon, M.J. (1963). Optimal Investment and Financing Policy. Journal of Finance, 18(2), 264–272.

Horace, H. (2003). Dividend Policies in Australia and Japan. International Advances in Economic Research, 9(2), 91-100.

Issa, A. (2015). The Determinants of Dividend Policy: Evidence from Malaysian Firms. Research Journal of Finance and Accounting, 6(1), 1-19.

Jabbour, G.M. & Liu, Y. (2011). The effect of tax rate change on dividend payout. Journal of Business & Economics Research (JBER), 2(10), 1-19.

Johansen, S. (1991). Estimation and hypothesis testing of cointegration vectors in Gaussian vector autoregressive models. Econometrica: Journal of the Econometric Society, 59(6), 1551-1580.

Ling, F.S., Abdull Mutalip, M.L., Shahrin, A.R., & Othman, M.S. (2007). Dividend policy: evidence from public listed companies in Malaysia. International Review of Business Research Papers, 4(4), 208-222.

Litzenberger, R.H. & Ramaswamy, K. (1979). The Effects of Personal Taxes and Dividends on Capital Assets Prices: Theory and Empirical Evidence. Journal of Financial Economics, l7(2), 163-195.

Luciana, M. & Aydin, O. (2006). Ownership structure and dividend policy: Evidence from Italian firms. The European Journal of Finance, 12(3), 20 -36.

Miller, M.H. & Modigliani, F. (1961). Dividend policy, growth, and the valuation of shares. The Journal of Business, 34(4), 411-433.

Nurul, F.M., Suhana. M., Nurul, A., & Nur, A,F, (2016). Modeling of Dividend Policy: A Comparison between Malaysia Financial and Non-Financial Industries. Journal of Applied Environmental and Biological Sciences, 6(7), 48-51.

Ross, S.E., Niebling, L.C., & Heckert, T.M. (1999). Sources of stress among college students. Coll. Stud. J, 33(1), 312–317.

Tobias, B. (2009). Dividend Policy and Inflation in Australia: Results from Cointegration Tests. International Journal of Business and Management, 4(6), 13-16.

Walter, J. (1963). Dividend Policy: Its Influence on the Value of the Enterprise. The Journal of Finance, 18(2), 280 – 291.

Yong, T.M. & Mazlina, M. (2016). Determinants of Dividend Payout Ratio: Evidence from Malaysian Public Listed Firms. Journal of Applied Environmental and Biological Sciences, 6(15), 48-54.

Yusniliyana, Y. & Suhaiza, I. (2016). Determinants of dividend policy of public listed companies in Malaysia. Review of International Business and Strategy, 26(1), 88-99.




DOI: http://dx.doi.org/10.21043/iqtishadia.v11i1.3157

Copyright (c) 2018 IQTISHADIA (Journal of Islamic Economics and Business)

Iqtishadia Journal Indexed by :

http://journal.stainkudus.ac.id/indexing/crossref.jpghttp://journal.stainkudus.ac.id/indexing/moraref.jpghttp://journal.stainkudus.ac.id/indexing/ipi.jpghttp://journal.stainkudus.ac.id/indexing/academiaedu.jpghttp://journal.stainkudus.ac.id/indexing/googlescholar.jpghttp://journal.stainkudus.ac.id/indexing/sinta.jpghttp://journal.stainkudus.ac.id/indexing/isjd.jpg 

Creative Commons License
Iqtishadia : Jurnal Kajian Ekonomi dan Bisnis Islam is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

View My Stats