Dividend policy determinants : a study on the relationship between the financial decision and investment decision of the Malaysian listed companies / Roszilah Shamsuddin

Shamsuddin, Roszilah (2001) Dividend policy determinants : a study on the relationship between the financial decision and investment decision of the Malaysian listed companies / Roszilah Shamsuddin. Masters thesis, Universiti Teknologi MARA.

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Abstract

This research reports on the findings of a study that examined the relationship between
investment and dividend policy decisions. A sample of 129 companies listed on the main
board of KLSE was obtained in order to ascertain this objective. This study
automatically helps to find out the factors that influence the dividend payout by
examining the interaction between the dividend and investment policies. The Correlation
and Regression Analysis are used to analyse the accounting data for the period 1990
until 1994, which obtained from the Corporate Handbook Malaysia. The findings
indicate that the relationship does exist between investment and dividend policy
decisions, which is negative relationship. The variables such as Net Organizational
Capital, Agency Cost and Transaction Cost are significant in determining the factors
influence firm's dividend payout. The results indicate that firms will pay a lower
dividend payout in order to satisfy the implicit claims of non-investor shareholders.
However, firms will pay a higher dividend payout when the free cash flow is larger.
Lastly, in order to avoid external financing, firms need to keep dividend payout lower.

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Item Type: Thesis (Masters)
Creators:
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Shamsuddin, Roszilah
UNSPECIFIED
Subjects: H Social Sciences > HG Finance > Financial management. Business finance. Corporation finance
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 > Investment companies. Investment trusts. Mutual funds > Malaysia
Divisions: Universiti Teknologi MARA, Shah Alam > Faculty of Accountancy
Item ID: 3187
Uncontrolled Keywords: Investment, dividend, dividend payout, financing
URI: https://ir.uitm.edu.my/id/eprint/3187

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