Effect of Dividends Policy on Firms Size, Leverage and Performance
A firm’s profit can either be retained within the business for investing, operating or can be paid out as dividend to its shareholders. Thus, decision making for determining the best dividend policy is very crucial in organizations. The objective of this case study is to examine the impact of divi...
| Main Authors: | , , |
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
2023
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| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/30604/1/8th%20ICSC%202023%20106-120.pdf |
| _version_ | 1825806214726942720 |
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| author | Jamaludin, Jeniza Singh, Bachevinder Sufar, Saiful Bahri |
| author_facet | Jamaludin, Jeniza Singh, Bachevinder Sufar, Saiful Bahri |
| author_sort | Jamaludin, Jeniza |
| collection | UUM |
| description | A firm’s profit can either be retained within the business for investing, operating or can be paid out as
dividend to its shareholders. Thus, decision making for determining the best dividend policy is very
crucial in organizations. The objective of this case study is to examine the impact of dividend policy
with the firm’s performance, size, and leverage. This case study uses cross-sectional time series of firm
listed on Bursa Malaysia from year 2012 – 2021. Secondary data of 140 firms has been generated from
Thompson Reuters DataStream and Bursa Malaysia website and analysed using descriptive, Pearson
correlation and multiple regression analysis. The result showed dividend per share and dividend payout
ratio has a significant positive relationship with return on asset, Tobin Q and firm size. Whereas
dividend per share and dividend pay-out ratio has a significant negative relationship against return on
equity and leverage. The result for dividend yield showed that it has insignificant negative relationship
between return on equity and leverage, but shows a negative significant relationship against firm size
and Tobin Q and for return on asset, it indicates a positive relationship. This shows that there is an
impact of financial performance, size, and leverage on dividend policy. |
| first_indexed | 2024-07-04T06:45:58Z |
| format | Conference or Workshop Item |
| id | uum-30604 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:45:58Z |
| publishDate | 2023 |
| record_format | eprints |
| spelling | uum-306042024-03-21T07:51:09Z https://repo.uum.edu.my/id/eprint/30604/ Effect of Dividends Policy on Firms Size, Leverage and Performance Jamaludin, Jeniza Singh, Bachevinder Sufar, Saiful Bahri HG Finance A firm’s profit can either be retained within the business for investing, operating or can be paid out as dividend to its shareholders. Thus, decision making for determining the best dividend policy is very crucial in organizations. The objective of this case study is to examine the impact of dividend policy with the firm’s performance, size, and leverage. This case study uses cross-sectional time series of firm listed on Bursa Malaysia from year 2012 – 2021. Secondary data of 140 firms has been generated from Thompson Reuters DataStream and Bursa Malaysia website and analysed using descriptive, Pearson correlation and multiple regression analysis. The result showed dividend per share and dividend payout ratio has a significant positive relationship with return on asset, Tobin Q and firm size. Whereas dividend per share and dividend pay-out ratio has a significant negative relationship against return on equity and leverage. The result for dividend yield showed that it has insignificant negative relationship between return on equity and leverage, but shows a negative significant relationship against firm size and Tobin Q and for return on asset, it indicates a positive relationship. This shows that there is an impact of financial performance, size, and leverage on dividend policy. 2023 Conference or Workshop Item PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/30604/1/8th%20ICSC%202023%20106-120.pdf Jamaludin, Jeniza and Singh, Bachevinder and Sufar, Saiful Bahri (2023) Effect of Dividends Policy on Firms Size, Leverage and Performance. In: 8th International Case Study Conference, 30 August-1 September 2023, Ibis Melaka Hotel, Bandar Melaka, Malaysia. |
| spellingShingle | HG Finance Jamaludin, Jeniza Singh, Bachevinder Sufar, Saiful Bahri Effect of Dividends Policy on Firms Size, Leverage and Performance |
| title | Effect of Dividends Policy on Firms Size, Leverage and Performance |
| title_full | Effect of Dividends Policy on Firms Size, Leverage and Performance |
| title_fullStr | Effect of Dividends Policy on Firms Size, Leverage and Performance |
| title_full_unstemmed | Effect of Dividends Policy on Firms Size, Leverage and Performance |
| title_short | Effect of Dividends Policy on Firms Size, Leverage and Performance |
| title_sort | effect of dividends policy on firms size leverage and performance |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/30604/1/8th%20ICSC%202023%20106-120.pdf |
| work_keys_str_mv | AT jamaludinjeniza effectofdividendspolicyonfirmssizeleverageandperformance AT singhbachevinder effectofdividendspolicyonfirmssizeleverageandperformance AT sufarsaifulbahri effectofdividendspolicyonfirmssizeleverageandperformance |