Empirical Analysis Of Determinants Of Dividend

EMPIRICAL ANALYSIS OF DETERMINANTS OF DIVIDEND PAYMENT: PROFITABILITY AND LIQUIDITY

Norhayati Mohamed, Wee Shu Hui, Normah Hj. Omar, Rashidah Abdul Rahman, Norazam Mastuki, Maz Ainy Abdul Azis, Shazelina Zakaria

chronicle Research Institute &Faculty of Accountancy, Universiti Teknologi MARA, 40450 Shah Alam, Selangor, Malaysia.

Phone: +603-5544-4975 e-mail: weesh411@salam.uitm.edu.my; wee.shu.hui@gmail.com

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 solicit: This paper empirically analyzed the determinants of dividend payment for the top cc companies in terms of market capitalization, listed on the Malaysian cope market. Large firms were chosen to increase the likelihood of capturing dividend payers. The findings showed that firms paid away on average, about 40 percent of their earnings as dividends. Furthermore, a quarter of their operating cash flow was apply to pay dividend. Lastly, the study confirms the fact that profitability and liquidity were essential determinants of dividend payment.

Note: We would like to thank the Minority Sh atomic number 18holder guard dog Group (MSWG) of Malaysia for their collaboration. The data collected for this study was part of a collaborative work between MSWG and UiTM.

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INTRODUCTION The topic of dividend has been extensively studied.



Yet it remained as one of the most controversial subjects in Finance. Studies in the past have covered many facets of dividends; among them are effects of dividend payment on firm value, reasons for paying dividends, determinants of dividend policy, and dividend trends, among others. in spite of the many theories and models put forth to explain the dividend phenomena, empirical register is necessary to establish the practice of theoretical concepts. Such reason as documented through statistical tests would confirm the relevance of theories or dispel them as myths.

Problem Statement In Malaysia, dividend payment matters. Several studies have shown that an

announcement of dividend increase (decrease) was followed by an...If you want to get a full essay, order it on our website: Orderessay



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