A study on relationship of dividends announcements during a bull and bear market / Asmarihan Ab Ghani

Several theories have been documented on the relevance and irrelevance of dividend announcement. Many authors continue to come up with different findings from their studies on the relevance of dividend policy. This research sought to establish the relationship between dividend announcement towards market to book value (MTBV), companyís profit (π) and total assets (TA) among 50 listed companies in Bursa Malaysia. Regression analysis was carried out to establish the relationship between dividend announcement towards market to book value (MTBV), companyís profit (π) and total assets (TA) in two different economic situations which is bull and bear market. The findings indicated that market to book value (MTBV) and
companyís profit (π) was a major factor affecting firm performance during both situations. Their relationship was also strong and positive. This therefore showed that dividend can be relying on the IV selected. It can be concluded, based on the findings of this research that dividend policy is relevant and that managers should
devote adequate time in designing a dividend policy that will enhance firm performance and therefore will increase shareholder value