Intra-industry comformity in dividend policy in Malaysia

The topic on determinants of dividend policy has remained as a hot topic even though much relevant research had conducted. Every company wishes to increase their company's value by having a suitable dividend policy. The dividend policy of a company may be affected by other industry players due...

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Main Author:	Teh, Yen Kai
Format:	Thesis
Language:	eng eng
Published:	2015
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/5561/1/s812941_01.pdf https://etd.uum.edu.my/5561/2/s812941_02.pdf
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id	my-uum-etd.5561
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Ghazali, Zahiruddin
topic	HG Finance
spellingShingle	HG Finance Teh, Yen Kai Intra-industry comformity in dividend policy in Malaysia
description	The topic on determinants of dividend policy has remained as a hot topic even though much relevant research had conducted. Every company wishes to increase their company's value by having a suitable dividend policy. The dividend policy of a company may be affected by other industry players due to the similar business environment. Besides, dividend decision can convey message to public about its performance which may indirectly affect a company's share price. Intra-industry effect on dividend policy was identified outside Malaysia. Since dividend is a crucial decision to a company, the same research should be conducted in Malaysia. The main purpose of this paper is to test the intra-industry effect on dividend policy in Malaysian market. In order to explore the influence of intra-industry effect, the logistic regression was performed by using the variables that may affect the probability of a company to pay dividend. The findings revealed a significant positive relationship between probability of a company paying a dividend and number of companies within plantation industry that pay a dividend. However, there is an insignificant relationship between probability of a company paying a dividend and number of companies within construction industry that pay a dividend. Overall, the findings support the view of intra-industry conformity in dividend policy in Malaysia. Thus, the intra-industry effect should be considered as one of the determinants in dividend policy. The findings are useful not only for investors but the company as well
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Teh, Yen Kai
author_facet	Teh, Yen Kai
author_sort	Teh, Yen Kai
title	Intra-industry comformity in dividend policy in Malaysia
title_short	Intra-industry comformity in dividend policy in Malaysia
title_full	Intra-industry comformity in dividend policy in Malaysia
title_fullStr	Intra-industry comformity in dividend policy in Malaysia
title_full_unstemmed	Intra-industry comformity in dividend policy in Malaysia
title_sort	intra-industry comformity in dividend policy in malaysia
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2015
url	https://etd.uum.edu.my/5561/1/s812941_01.pdf https://etd.uum.edu.my/5561/2/s812941_02.pdf
_version_	1747827949997916160
spelling	my-uum-etd.55612021-03-29T09:54:08Z Intra-industry comformity in dividend policy in Malaysia 2015 Teh, Yen Kai Ghazali, Zahiruddin Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance The topic on determinants of dividend policy has remained as a hot topic even though much relevant research had conducted. Every company wishes to increase their company's value by having a suitable dividend policy. The dividend policy of a company may be affected by other industry players due to the similar business environment. Besides, dividend decision can convey message to public about its performance which may indirectly affect a company's share price. Intra-industry effect on dividend policy was identified outside Malaysia. Since dividend is a crucial decision to a company, the same research should be conducted in Malaysia. The main purpose of this paper is to test the intra-industry effect on dividend policy in Malaysian market. In order to explore the influence of intra-industry effect, the logistic regression was performed by using the variables that may affect the probability of a company to pay dividend. The findings revealed a significant positive relationship between probability of a company paying a dividend and number of companies within plantation industry that pay a dividend. However, there is an insignificant relationship between probability of a company paying a dividend and number of companies within construction industry that pay a dividend. Overall, the findings support the view of intra-industry conformity in dividend policy in Malaysia. Thus, the intra-industry effect should be considered as one of the determinants in dividend policy. The findings are useful not only for investors but the company as well 2015 Thesis https://etd.uum.edu.my/5561/ https://etd.uum.edu.my/5561/1/s812941_01.pdf text eng public https://etd.uum.edu.my/5561/2/s812941_02.pdf text eng public masters masters Universiti Utara Malaysia Allen F. and Michaely R. (2002). Payout policy. Center for Financial Institutions Working Papers, 01-21 Al-Deehani, T. M. (2003). Determinants of Dividend Policy: The Case of Kuwait. Journal of Economic and Administrative Sciences, Vol. 19 Iss 2 pp. 59 - 76 Al-Malkawi, H (2007). Determinants of Corporate Dividend Policy in Jordan: An Application of the Tobit Model. Journal of Economic & Administrative Sciences Vol. 23, No. 2, pp. 44-70. Annuar, M. N. & Shamsher, M. (1993). Earnings and Dividend Behaviour. Journal of Social Science and Humanities 1 (2): 171–177. Ayman, I. F. Issa. (2015) The Determinants of Dividend Policy: Evidence from Malaysian Firms. 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Intra-industry comformity in dividend policy in Malaysia

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