The impacts of corporate governance towards the firms' dividend payout ratio / Maslinda Khairuzzaman

Khairuzzaman, Maslinda (2018) The impacts of corporate governance towards the firms' dividend payout ratio / Maslinda Khairuzzaman. Degree thesis, UiTM Cawangan Johor.


Corporate governance plays an important role to boost the confidence of investors and other participants in capital markets. Generally, it is a system that directs and controls the distribution of responsibilities and rights among a firm's stakeholders. Dividend is considered as a reward for providing finances to a firm, as without any dividend, shares would not be valuable. The issue of corporate governance has always been an essential and critical element for both private and public sectors in Malaysia. Malaysia's Prime Minister has even emphasized for more concentration on the corporate governance related issues. He argued the need of the firms in the country to benchmark to an effective system that could enhance the quality of good corporate management practice. Besides, dividend payout ratio will subject the firms to be examined by capital market in order to secure more capital for expansion. Good corporate governance is believed to be a key factor in order to enhance firms' dividend payout ratio and maximize the shareholders' wealth. This research analyses dividend payout ratio as the dependent variable. Meanwhile, the independent variables are board size, outside directors proportion, managerial ownership, ownership concentration and board meeting frequency. This research uses a sample of 10 companies in finance sectors that listed in Bursa Malaysia. All data of the variables are taken from the firms' Annual Report that published in Bursa Malaysia and cover a period of 7 years from 2010 to 2016. As the research methodologies, this study uses panel data analysis, descriptive analysis, correlation analysis, multiple regression analysis by using pooled ordinary least squares (OLS) method and assumption tests. It finds that all the independent variables of corporate governance have relationship with the firms' dividend payout ratio.


Item Type: Thesis (Degree)
Email / ID Num.
Khairuzzaman, Maslinda
Email / ID Num.
Thesis advisor
Hassan, Suzana
Thesis advisor
Mohamed Yousop, Nur Liyana
Subjects: H Social Sciences > HD Industries. Land use. Labor > Corporations > Corporate organization. Corporate governance > Malaysia
H Social Sciences > HG Finance > Financial management. Business finance. Corporation finance > Dividends. Stock dividends. Dividend reinvestment
H Social Sciences > HG Finance > Investment, capital formation, speculation > Stock exchanges. Insider trading in securities
Divisions: Universiti Teknologi MARA, Johor > Segamat Campus > Faculty of Business and Management
Programme: Bachelor of Business Administration (HONS) Finance
Keywords: Corporate governance; Dividend payout ratio; Bursa Malaysia
Date: 2018
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