The dynamics effects of dividend policy in comparison between conventional and full fledged Islamic banking system / Awang Afzanizam Awang Damit

This paper adds to the existing body of knowledge by discussed the determinants of dividend policy in the Malaysia Financial Institutions by looking at both conventional and Full-Fledged Islamic banking system. This study used the datasets from Bursa Malaysia and Banks Annual Report as a source of data to measure the relationship between profitability, revenue growth and lagged dividend with dividend payout ratio. The researches are conducted the time series analysis and the findings were obtained from the Multiple Linear Regression analysis. The study provides result that there are slightly different determinant of dividend policy between conventional bank and Full Fledged Islamic banking whereby only lagged dividend show positive significant relationship with dividend payout for Full Fledged Islamic banking. On the other hand, for conventional bank, there are different ways of determinant in dividend policy. Some bank also using lagged dividend as their determinant and the some other bank used profitability and revenue growth.