The relationship between dividend payout ratio and firm performance within Southeast Asia countries / Anisah Jauli

The objective of this study was to determine the relationship of the firm performance variables on dividend payout ratio within Southeast Asia country consist of Malaysia, Indonesia, Philippines and Vietnam. The curiosity towards the relationship between dividend payout ratio and firm performance variables was encouraged to completing this study. Therefore, as an effort to help the investor monitor the behaviours and the patterns of the dividend payout ratio, the firm performance (FP), Net profit Margin (NPM), Return on Asset (ROA), Return on Equity (ROE), and Earning per share (EPS) was used as the independent variables. The data collections were based on 144 listed companies within these 4 countries for 8 years periods from the year 2009 until 2016. This study was based on three theories which are the agency theory, bird in hand theory and the signalling theory. The data in this study was collected from secondary data such as from data stream and some of it from yahoo finance website and annual report of the company. The panel data analysis was used in this study and Stata 12 software as the method used to run the raw data. The results from the statistical test were presented in form of tables and figures. In fact, the firm performance and dividend payout ratio was revealed a different relationship for each of the independent variable within these four countries, as stated in findings only FP and EPS had significant relationship with DPR.