Determinants of dividend payout ratios in Malaysia / Nuradylin Mary Abdullah

This study seeks to examine the determinants of dividend payout ratios of listed companies in Malaysia. The analyses were performed using data derived from the annual reports of companies listed on the Kuala Lumpur Stock Exchange (KLSE) during a three-year period.
The result of the study indicated that dividend payout ratios are related to profitability and growth. Conversely, risk and cash flow is not significant predictor for dividend payouts during the three periods under study. The results suggested that despite of low or negative cash flow the companies continue to pay dividends to their shareholders. Companies that increase dividend payouts have lower risk. From the study it can be concluded that profitability and growth on sales influencing dividend payout in the period of study. Factors like risk and cash flow are not significant in determining dividend payout.