The Relevance of Bird-in-Hand Theory to ShariahInclined Investors: A Case Study of Malaysia
The purpose of this study is to identify whether the wealth of Shariah-inclined investors is affected by dividend policy. This study is different from other studies because earlier studies do not differentiate between Shariah-compliant and non-Shariah compliant stocks, creating a gap for dividend si...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
UiTM Press
2019-12-01
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| Series: | Journal of International Business, Economics and Entrepreneurship |
| Subjects: | |
| Online Access: | https://myjms.mohe.gov.my/index.php/JIBE/article/view/14317 |
| _version_ | 1797447632479584256 |
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| author | Fareiny Morni Azreil Mirzza Iskandar Azilawati Banchit |
| author_facet | Fareiny Morni Azreil Mirzza Iskandar Azilawati Banchit |
| author_sort | Fareiny Morni |
| collection | DOAJ |
| description | The purpose of this study is to identify whether the wealth of Shariah-inclined investors is affected by dividend policy. This study is different from other studies because earlier studies do not differentiate between Shariah-compliant and non-Shariah compliant stocks, creating a gap for dividend signaling theory and bird-in-hand theory on Shariah-compliant financial products. This study employs panel data analysis and multiple linear regression with the most recent data representing eight (8) out of twelve (12) sectors in the Malaysian stock market. Dividend per share and retained earnings per share are used as a proxy for dividend policy while market price per share is used as a proxy for shareholders’ wealth. It was found that for Shariah-compliant stocks, both dividend per share and retained earnings per share are insignificant in affecting shareholders’ wealth. Unlike other studies on dividend policy which do not discriminate between Shariah-compliant and non-Shariah compliant stocks, this study finds that dividend policy to be irrelevant to Shariah-inclined investors. |
| first_indexed | 2024-03-09T13:58:43Z |
| format | Article |
| id | doaj.art-1c02ba900d1f4af6be0e70b78411d0c7 |
| institution | Directory Open Access Journal |
| issn | 2550-1429 |
| language | English |
| last_indexed | 2024-03-09T13:58:43Z |
| publishDate | 2019-12-01 |
| publisher | UiTM Press |
| record_format | Article |
| series | Journal of International Business, Economics and Entrepreneurship |
| spelling | doaj.art-1c02ba900d1f4af6be0e70b78411d0c72023-11-30T10:52:57ZengUiTM PressJournal of International Business, Economics and Entrepreneurship2550-14292019-12-0142677210.24191/jibe.v4i2.14317The Relevance of Bird-in-Hand Theory to ShariahInclined Investors: A Case Study of MalaysiaFareiny Morni0Azreil Mirzza Iskandar1Azilawati Banchit2Faculty of Business Management, Universiti Teknologi MARA, MalaysiaFaculty of Business Management, Universiti Teknologi MARA, MalaysiaFaculty of Business Management, Universiti Teknologi MARA, MalaysiaThe purpose of this study is to identify whether the wealth of Shariah-inclined investors is affected by dividend policy. This study is different from other studies because earlier studies do not differentiate between Shariah-compliant and non-Shariah compliant stocks, creating a gap for dividend signaling theory and bird-in-hand theory on Shariah-compliant financial products. This study employs panel data analysis and multiple linear regression with the most recent data representing eight (8) out of twelve (12) sectors in the Malaysian stock market. Dividend per share and retained earnings per share are used as a proxy for dividend policy while market price per share is used as a proxy for shareholders’ wealth. It was found that for Shariah-compliant stocks, both dividend per share and retained earnings per share are insignificant in affecting shareholders’ wealth. Unlike other studies on dividend policy which do not discriminate between Shariah-compliant and non-Shariah compliant stocks, this study finds that dividend policy to be irrelevant to Shariah-inclined investors.https://myjms.mohe.gov.my/index.php/JIBE/article/view/14317– dividend policydividend relevance theorybird in hand theoryshariah-compliant firmsislamic capital market |
| spellingShingle | Fareiny Morni Azreil Mirzza Iskandar Azilawati Banchit The Relevance of Bird-in-Hand Theory to ShariahInclined Investors: A Case Study of Malaysia Journal of International Business, Economics and Entrepreneurship – dividend policy dividend relevance theory bird in hand theory shariah-compliant firms islamic capital market |
| title | The Relevance of Bird-in-Hand Theory to ShariahInclined Investors: A Case Study of Malaysia |
| title_full | The Relevance of Bird-in-Hand Theory to ShariahInclined Investors: A Case Study of Malaysia |
| title_fullStr | The Relevance of Bird-in-Hand Theory to ShariahInclined Investors: A Case Study of Malaysia |
| title_full_unstemmed | The Relevance of Bird-in-Hand Theory to ShariahInclined Investors: A Case Study of Malaysia |
| title_short | The Relevance of Bird-in-Hand Theory to ShariahInclined Investors: A Case Study of Malaysia |
| title_sort | relevance of bird in hand theory to shariahinclined investors a case study of malaysia |
| topic | – dividend policy dividend relevance theory bird in hand theory shariah-compliant firms islamic capital market |
| url | https://myjms.mohe.gov.my/index.php/JIBE/article/view/14317 |
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