Dynamic panel model of dividend policies: Malaysian perspective

The aim of this paper is to identify the key determinants of the dividend policies for Malaysian listed firms. The sample in this study incorporates the top 100 listed firms on Bursa Malaysia (Bursa) over a ten-year period from 2007 to 2016. The dynamic panel data set was constructed using the sampl...

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Main Authors: Shafai, Nor Anis, Md Nassir, Annuar, Kamarudin, Fakarudin, Abdul Rahim, Norhuda, Ahmad, Nor Hayati
Format: Article
Language:English
Published: Faculty of Management and Finance, University of Finance and Management in Warsaw 2019
Online Access:http://psasir.upm.edu.my/id/eprint/79462/
http://psasir.upm.edu.my/id/eprint/79462/1/Dynamic%20panel%20model%20of%20dividend%20policies.pdf
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author Shafai, Nor Anis
Md Nassir, Annuar
Kamarudin, Fakarudin
Abdul Rahim, Norhuda
Ahmad, Nor Hayati
author_facet Shafai, Nor Anis
Md Nassir, Annuar
Kamarudin, Fakarudin
Abdul Rahim, Norhuda
Ahmad, Nor Hayati
author_sort Shafai, Nor Anis
building UPM Institutional Repository
collection Online Access
description The aim of this paper is to identify the key determinants of the dividend policies for Malaysian listed firms. The sample in this study incorporates the top 100 listed firms on Bursa Malaysia (Bursa) over a ten-year period from 2007 to 2016. The dynamic panel data set was constructed using the sample firms. The results indicate that dividend policies are positively significantly related to profitability and firm size in Malaysia. Thus, this suggests that Malaysian listed firms determine their future dividends based on past dividend payments. Meanwhile, dividend policies are negatively and significantly associated with leverage and business risk. Therefore, this study used the generalized method of moments (GMM) to reveal unique findings and the findings should inspire analysts, policy makers, institutional investors and investors to examine the dividend policy puzzle, especially for developing countries.
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institution Universiti Putra Malaysia
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language English
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publisher Faculty of Management and Finance, University of Finance and Management in Warsaw
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spelling upm-794622021-04-27T02:51:11Z http://psasir.upm.edu.my/id/eprint/79462/ Dynamic panel model of dividend policies: Malaysian perspective Shafai, Nor Anis Md Nassir, Annuar Kamarudin, Fakarudin Abdul Rahim, Norhuda Ahmad, Nor Hayati The aim of this paper is to identify the key determinants of the dividend policies for Malaysian listed firms. The sample in this study incorporates the top 100 listed firms on Bursa Malaysia (Bursa) over a ten-year period from 2007 to 2016. The dynamic panel data set was constructed using the sample firms. The results indicate that dividend policies are positively significantly related to profitability and firm size in Malaysia. Thus, this suggests that Malaysian listed firms determine their future dividends based on past dividend payments. Meanwhile, dividend policies are negatively and significantly associated with leverage and business risk. Therefore, this study used the generalized method of moments (GMM) to reveal unique findings and the findings should inspire analysts, policy makers, institutional investors and investors to examine the dividend policy puzzle, especially for developing countries. Faculty of Management and Finance, University of Finance and Management in Warsaw 2019 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/79462/1/Dynamic%20panel%20model%20of%20dividend%20policies.pdf Shafai, Nor Anis and Md Nassir, Annuar and Kamarudin, Fakarudin and Abdul Rahim, Norhuda and Ahmad, Nor Hayati (2019) Dynamic panel model of dividend policies: Malaysian perspective. Contemporary Economics, 13 (3). pp. 239-252. ISSN 2084-0845; ESSN: 2300-8814 https://search.proquest.com/docview/2389342845/abstract/CF84D55C49C84FADPQ/1?accountid=27932 10.5709/ce.1897-9254.310
spellingShingle Shafai, Nor Anis
Md Nassir, Annuar
Kamarudin, Fakarudin
Abdul Rahim, Norhuda
Ahmad, Nor Hayati
Dynamic panel model of dividend policies: Malaysian perspective
title Dynamic panel model of dividend policies: Malaysian perspective
title_full Dynamic panel model of dividend policies: Malaysian perspective
title_fullStr Dynamic panel model of dividend policies: Malaysian perspective
title_full_unstemmed Dynamic panel model of dividend policies: Malaysian perspective
title_short Dynamic panel model of dividend policies: Malaysian perspective
title_sort dynamic panel model of dividend policies: malaysian perspective
url http://psasir.upm.edu.my/id/eprint/79462/
http://psasir.upm.edu.my/id/eprint/79462/
http://psasir.upm.edu.my/id/eprint/79462/
http://psasir.upm.edu.my/id/eprint/79462/1/Dynamic%20panel%20model%20of%20dividend%20policies.pdf