Corporate Dividend Policy And Behaviour: The Malaysian Evidence
This study examines corporate dividend policy and behaviour of the Kuala Lumpur Stock Exchange (KLSE) companies. Our results confirm the influence of industry on payout ratios. We also find that payout ratios in a given industry vary significantly across time. The results of multinomial logit ana...
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| Format: | Article |
| Language: | English |
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Asian Academy of Management (AAM)
2003
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| Subjects: | |
| Online Access: | http://eprints.usm.my/35609/ http://eprints.usm.my/35609/1/AAMJ_8-1-2.pdf |
| _version_ | 1848877668604313600 |
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| author | I. M. Pandey, I. M. Pandey |
| author_facet | I. M. Pandey, I. M. Pandey |
| author_sort | I. M. Pandey, I. M. Pandey |
| building | USM Institutional Repository |
| collection | Online Access |
| description | This study examines corporate dividend policy and behaviour of the Kuala Lumpur Stock Exchange
(KLSE) companies. Our results confirm the influence of industry on payout ratios. We also find that
payout ratios in a given industry vary significantly across time. The results of multinomial logit
analysis reveal that the KLSE companies' dividend actions are sensitive to the changes in earnings.
Probabilities of dividend increases, decreases and omissions are high, respectively, with earnings
increases, decreases and losses. This causes volatility in dividend payments. The KLSE firms
appear to be reluctant to omit dividend except when they suffer losses. Further, using Lintner's
framework and panel data regression methodology, we find evidence in favour of regular, but less
stable, dividend policies being pursued by the KLSE companies. This is contrary to the experiences
of companies in the developed capital markets. The results of the two-way fixed firm and time
effects model reveal that there are significant differences in dividend policies across individual
firms and over time. |
| first_indexed | 2025-11-15T17:19:06Z |
| format | Article |
| id | usm-35609 |
| institution | Universiti Sains Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T17:19:06Z |
| publishDate | 2003 |
| publisher | Asian Academy of Management (AAM) |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | usm-356092017-07-13T08:20:34Z http://eprints.usm.my/35609/ Corporate Dividend Policy And Behaviour: The Malaysian Evidence I. M. Pandey, I. M. Pandey HD28-70 Management. Industrial Management This study examines corporate dividend policy and behaviour of the Kuala Lumpur Stock Exchange (KLSE) companies. Our results confirm the influence of industry on payout ratios. We also find that payout ratios in a given industry vary significantly across time. The results of multinomial logit analysis reveal that the KLSE companies' dividend actions are sensitive to the changes in earnings. Probabilities of dividend increases, decreases and omissions are high, respectively, with earnings increases, decreases and losses. This causes volatility in dividend payments. The KLSE firms appear to be reluctant to omit dividend except when they suffer losses. Further, using Lintner's framework and panel data regression methodology, we find evidence in favour of regular, but less stable, dividend policies being pursued by the KLSE companies. This is contrary to the experiences of companies in the developed capital markets. The results of the two-way fixed firm and time effects model reveal that there are significant differences in dividend policies across individual firms and over time. Asian Academy of Management (AAM) 2003 Article PeerReviewed application/pdf en http://eprints.usm.my/35609/1/AAMJ_8-1-2.pdf I. M. Pandey, I. M. Pandey (2003) Corporate Dividend Policy And Behaviour: The Malaysian Evidence. Asian Academy of Management Journal (AAMJ), 8 (1). pp. 1-16. ISSN 1394-2603 http://web.usm.my/aamj/8.1.2003/AAMJ%208-1-2.pdf |
| spellingShingle | HD28-70 Management. Industrial Management I. M. Pandey, I. M. Pandey Corporate Dividend Policy And Behaviour: The Malaysian Evidence |
| title | Corporate Dividend Policy And Behaviour:
The Malaysian Evidence |
| title_full | Corporate Dividend Policy And Behaviour:
The Malaysian Evidence |
| title_fullStr | Corporate Dividend Policy And Behaviour:
The Malaysian Evidence |
| title_full_unstemmed | Corporate Dividend Policy And Behaviour:
The Malaysian Evidence |
| title_short | Corporate Dividend Policy And Behaviour:
The Malaysian Evidence |
| title_sort | corporate dividend policy and behaviour:
the malaysian evidence |
| topic | HD28-70 Management. Industrial Management |
| url | http://eprints.usm.my/35609/ http://eprints.usm.my/35609/ http://eprints.usm.my/35609/1/AAMJ_8-1-2.pdf |