Impact of dividend policy on the shareholders’ wealth: Shariah vs non-Shariah companies listed in Bursa Malaysia / Farazida Mohd Akit and Nor Haliza Hamzah

Mohd Akit, Farazida and Hamzah, Nor Haliza (2014) Impact of dividend policy on the shareholders’ wealth: Shariah vs non-Shariah companies listed in Bursa Malaysia / Farazida Mohd Akit and Nor Haliza Hamzah. Student Project. Arshad Ayub Graduate Business School, Shah Alam. (Unpublished)

Abstract

The purpose of this study is to examine the impact of dividend policy on the shareholders’ wealth of Shariah and non-Shariah compliance companies listed in Bursa Malaysia main market. A sample of 274 Shariah compliance companies and 129 non-Shariah compliance companies listed on Bursa Malaysia for the period of 2004 to 2013 has been selected for this study. The results are obtained through two-way fixed-effect Generalized Least Squares (GLS) regression for Shariah compliance companies and random-effect GLS regression for non-Shariah compliance companies. The identified determinants are dividend per share (DPS), retained earnings per share (REPS), return on equity (ROE), lagged price earnings ratio (PER,_|), financial leverage (DTE) and firm’s size (InTA). The results indicates that the measurements for dividend policy (DPS and REPS) are significant determinants of shareholders’ wealth for both Shariah and non-Shariah compliance companies. On the other hand, it is revealed that financial leverage is an influential determinant of shareholders’ wealth for Shariah compliance companies but not for non-Shariah companies.

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Metadata

Item Type: Monograph (Student Project)
Creators:
CreatorsID Num.
Mohd Akit, FarazidaUNSPECIFIED
Hamzah, Nor HalizaUNSPECIFIED
Divisions: Arshad Ayub Graduate Business School (AAGBS)
Item ID: 18252
Uncontrolled Keywords: Shareholders’ wealth; Shariah; Non-Shariah companies; Bursa Malaysia
URI: http://ir.uitm.edu.my/id/eprint/18252

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