Jamaludin, Jeniza and Singh, Bachevinder and Sufar, Saiful Bahri (2023) Effect of Dividends Policy on Firms Size, Leverage and Performance. In: 8th International Case Study Conference, 30 August-1 September 2023, Ibis Melaka Hotel, Bandar Melaka, Malaysia.

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Abstract

A firm’s profit can either be retained within the business for investing, operating or can be paid out as dividend to its shareholders. Thus, decision making for determining the best dividend policy is very crucial in organizations. The objective of this case study is to examine the impact of dividend policy with the firm’s performance, size, and leverage. This case study uses cross-sectional time series of firm listed on Bursa Malaysia from year 2012 – 2021. Secondary data of 140 firms has been generated from Thompson Reuters DataStream and Bursa Malaysia website and analysed using descriptive, Pearson correlation and multiple regression analysis. The result showed dividend per share and dividend payout ratio has a significant positive relationship with return on asset, Tobin Q and firm size. Whereas dividend per share and dividend pay-out ratio has a significant negative relationship against return on equity and leverage. The result for dividend yield showed that it has insignificant negative relationship between return on equity and leverage, but shows a negative significant relationship against firm size and Tobin Q and for return on asset, it indicates a positive relationship. This shows that there is an impact of financial performance, size, and leverage on dividend policy.

Item Type:	Conference or Workshop Item (Paper)
Uncontrolled Keywords:	Financial Performance, Firm Size, Leverage, Dividend Policy, Dividend Yield
Subjects:	H Social Sciences > HG Finance
Divisions:	Institute for Management and Business Research (IMBRe)
Depositing User:	Mrs Nurin Jazlina Hamid
Date Deposited:	21 Mar 2024 07:51
Last Modified:	21 Mar 2024 07:51
URI:	https://repo.uum.edu.my/id/eprint/30604

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