The dividend payout policy: a comparison on Malaysian Islamic and conventional financial institutions / Muhammad Farhan Adli Azhar

This study aims to identify the determinants of dividend policy in Malaysian Financial Institutions by looking at conventional and Islamic banking sectors. The panel data set was constructed from financial institutions in Malaysia. Consequently, it can have various fundamental consequences. Therefore, any economy must determine the reasons for these ties of the dividend payout. The previous survey in the Malaysian case study produces mixed results. Therefore, this research is expected to update existing evidence using the latest data and provide more insight into the relationship between dividend policy in both financial institutions in Malaysia. The results show a statistically insignificant negative relationship between dividend payout and revenue growth of the conventional Malaysian financial institutions. Conventional banks distribute higher dividends when they record higher profitability. In this analysis, a multiple regression model was used to evaluate the relationship between independent and dependent variables. Sixteen financial institutions shall be selected as a sample of this research over a span of 10 years. This is in line with previous research, the results suggest that Islamic banks in Malaysia only look to the past dividend payment to determine their future dividend payments.