A study on the effects of dividend policy on stock price in Malaysia's consumer sector / Norhidayah Mohd Aris

Dividend policy is the set of procedures a company uses to decide how much of its earnings it will pay out to shareholders. This research will be made to investigate whether there is a significant relationship between dividend policy and stock price. This study will be conduct 135 public listed companies from the consumer sector that selected from Bursa Malaysia. There are many internal and external factors that affect stock price. Hence, this research to analyze whether dividend policy decision give an effect on stock price in consumer sector. The dependent variable use in this research is market price while the independent variable which is dividend yield, earning per share, net income, return on equity and return on asset. The objective of this study is identifying the relationship between stock price and the dividend policy of the consumer sector. Other than that, investigate the factor effect in stock price of the consumer sector. While it also to measure the impact of the consumer dividend policy on its stock price. The sample of the research is 43 companies from 135 consumer product companies listed in Bursa Malaysia. The period of this study start from year 2006 to 2015. The collected data for this study is secondary data such as journal, articles and electronic sources. The data collected from database which is Osiris UiTM Segamat library and Internet. This research use panel data analysis by using the Stata Method. The result from this study show that the Fixed Effect Model. Hausman Test are used to identify either the result fixed or random effect model. The final result show that earning per share, return on asset and return on equity have significant with 5% level of significant. Earning per share and return on asset have positive relationship with market price in Malaysia. In the recommendation on this research, getting accurate data , select more independent variable and widen the scope of study will help in the future research.