Dividend policy and its impact on stock price: an analysis on plantation sector in Malaysia / Siti Sapiah Raduan

Dividend policy can be known as one of the most challenging topic of modern financial economics. Dividend policy is the procedures to a company in order to decide the amount of the earnings that will pay out to the shareholders. Thus, this research will be conducted to analyse the effect of dividend policy on stock price that will focused on 41 public listed companies of plantation sector selected from Bursa Malaysia. The objective of the Study to examine the impact of dividend privacy of plantation sector on its stock price, to analyse the performance of the stock price in the plantation sector and to investigate the relationship between stock price and dividend policy of the plantation sector. The dependent variable of this study is market price. While, the independent variables are dividend yield, retention ratio, net income, earnings per share, and return on equity. The sample of the research consists of 25 public listed companies from the plantation sector that selected from Bursa Malaysia. The period of the research is from year 2001 to 2014 annually. This research used secondary data analysis in order to collect the data such as journal, articles and electronic sources. The data collected from database from Internet, Osiris UiTM Segamat library and Thomson Reuters Eikon. The econometric method that will be used in this study are by using Multiple Linear Regression Analysis, Autocorrelation Test. Coefficient of Determination (R-Square), Adjusted R-Square, Variable Inflation Factor and Heteroscedasticity.