The Effect of Dividend Policy on Share Prices of Bursa Malaysia Listed Companies

The effect of dividend policy on share price movement is one of the most hotly disputed topics in corporate finance. The share price has been the most common starting point for investors when make decision to buy share because it represents all aspects, both internal and external factors. There are...

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Main Author:	Radziah, Halid
Format:	Thesis
Language:	eng eng
Published:	2022
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/11114/1/depositpermission-827114.pdf https://etd.uum.edu.my/11114/2/s827114_01.pdf
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id	my-uum-etd.11114
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spelling	my-uum-etd.111142024-05-27T03:09:06Z The Effect of Dividend Policy on Share Prices of Bursa Malaysia Listed Companies 2022 Radziah, Halid Hanafi, Norshafizah School of Economics, Finance & Banking School of Economics, Finance and Banking HG Finance The effect of dividend policy on share price movement is one of the most hotly disputed topics in corporate finance. The share price has been the most common starting point for investors when make decision to buy share because it represents all aspects, both internal and external factors. There are various empirical studies that researchers can refer to in order to examine and analyse the effect of dividend policy on share prices, however the results are inconsistent. This study is focused on this issue. The purpose of this study is to look at the effect of dividend policy on the share price of companies listed on the FTSE FBM100 index from 2011 through 2020. The dependent variable is share prices whereas dividend payout, dividend yield, return on invested capital, free cash flow yield, volume traded, and company size based on market capitalization are independent variables. The number of the samples in this study are 56 companies by using the regression model. According to the results of panel data regression model indicates that dividend payout has an insignificant effect on share prices, however, dividend yield has negative and significant effect on share price. Return on invested capital, volume traded, and company size by market capitalization are significant effect on share price while free cash flow yield is insignificantly effect. As a result, we find that dividend policy has considerable impact on share prices, demonstrating that dividend policy is important. The findings of this study are expected to serve as a reference for companies in establishing dividend policies that will improve company performance and for investors in considering whether it should retain, increase or decrease their stake in the company. 2022 Thesis https://etd.uum.edu.my/11114/ https://etd.uum.edu.my/11114/1/depositpermission-827114.pdf text eng staffonly https://etd.uum.edu.my/11114/2/s827114_01.pdf text eng public other masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Hanafi, Norshafizah
topic	HG Finance
spellingShingle	HG Finance Radziah, Halid The Effect of Dividend Policy on Share Prices of Bursa Malaysia Listed Companies
description	The effect of dividend policy on share price movement is one of the most hotly disputed topics in corporate finance. The share price has been the most common starting point for investors when make decision to buy share because it represents all aspects, both internal and external factors. There are various empirical studies that researchers can refer to in order to examine and analyse the effect of dividend policy on share prices, however the results are inconsistent. This study is focused on this issue. The purpose of this study is to look at the effect of dividend policy on the share price of companies listed on the FTSE FBM100 index from 2011 through 2020. The dependent variable is share prices whereas dividend payout, dividend yield, return on invested capital, free cash flow yield, volume traded, and company size based on market capitalization are independent variables. The number of the samples in this study are 56 companies by using the regression model. According to the results of panel data regression model indicates that dividend payout has an insignificant effect on share prices, however, dividend yield has negative and significant effect on share price. Return on invested capital, volume traded, and company size by market capitalization are significant effect on share price while free cash flow yield is insignificantly effect. As a result, we find that dividend policy has considerable impact on share prices, demonstrating that dividend policy is important. The findings of this study are expected to serve as a reference for companies in establishing dividend policies that will improve company performance and for investors in considering whether it should retain, increase or decrease their stake in the company.
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Radziah, Halid
author_facet	Radziah, Halid
author_sort	Radziah, Halid
title	The Effect of Dividend Policy on Share Prices of Bursa Malaysia Listed Companies
title_short	The Effect of Dividend Policy on Share Prices of Bursa Malaysia Listed Companies
title_full	The Effect of Dividend Policy on Share Prices of Bursa Malaysia Listed Companies
title_fullStr	The Effect of Dividend Policy on Share Prices of Bursa Malaysia Listed Companies
title_full_unstemmed	The Effect of Dividend Policy on Share Prices of Bursa Malaysia Listed Companies
title_sort	effect of dividend policy on share prices of bursa malaysia listed companies
granting_institution	Universiti Utara Malaysia
granting_department	School of Economics, Finance & Banking
publishDate	2022
url	https://etd.uum.edu.my/11114/1/depositpermission-827114.pdf https://etd.uum.edu.my/11114/2/s827114_01.pdf
_version_	1804888193515913216

The Effect of Dividend Policy on Share Prices of Bursa Malaysia Listed Companies

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