Analyzing the contributing factors influencing the dividend payout ratio of properties industry in Malaysia / Noraini Subani

Dividend payout plays important role as a shareholder wealth. The profit that firms have been distribute to paid dividend among shareholders and retained earnings will be used in future investment. In this paper, the main purpose is to analyzing the contributing factors influencing the dividend payout ratio of properties industry in Malaysia. The factors examined in this study include firm size, leverage, profitability, liquidity, and investment opportunities. Data were collected from datastream on public listed companies under properties industry in Bursa Malaysia and annual report of the public listed companies. There are 97 companies listed in properties industry, but this study examined only I I listed companies were chosen. Ordinary Least Square Regression (OLS) technique was used to measure the firm size, leverage, profitability, liquidity and investment opportunities to analyzing the relationship between variables and the dividend payout ratio. These independent variables are used to see whether there is a significant or insignificant with the dividend payout ratio. The results indicated that are firm size, leverage, profitability, liquidity, and investment opportunities have a significant influence on dividend payout ratio with firm size and liquidity have a positive significant effect. Furthermore, the findings also explained that leverage, profitability and investment opportunities have a negative significant effect. Findings from the study would be useful for the shareholders in making future investment.