Determinants and Stability of Dividend Payment: The Case of Malaysian Public-Listed Shariah-Compliant Firms

Fauzias Mat Nor, Nur Ainna Ramli, Ainulashikin Marzuki, Norfhadzilahwati Rahim



The purpose of this paper was to examine the determinants and stability of dividend payments in Malaysia from 2007 to 2016. The purposes of this research were (1) to analyse the stability of dividend per share, (2) to examine the determinants of dividend yield, and (3) to examine the effect of dividend per share on the sustainable growth rate of Shariah-compliant firms in Malaysia. Static model and dynamic model estimated using Generalised Method of Moment were used in this research. The results indicated that the stable earnings per share can afford the firms to pay a larger dividend. Futhermore, the higher dividend from the previous year with the lower speed adjustment indicated high smoothing and stability of dividend payment. The results on determinants of the dividend yield revealed the five factors that are lagged dividend yield, firm size, sales growth, leverage, and market value to book value have a significant impact on dividend yield, with lagged dividend yield and firm size showing a significant positive effect, while sales growth, leverage, and market value to book value have a significant negative impact. In addition, the results indicated that dividend per share had a significantly positive impact on the sustainable growth rate. The results of this study are important for the management team of companies to decide an appropriate dividend policy for the company to maintain a stable dividend payment and have the financial health of a company, These results also provided the understanding of dividend policy behaviour in Malaysia, particularly on Malaysian public-listed Shariah-compliant firms.

Keywords: Dividend policy, Panel data analysis, Malaysian Public-listed Shariah-compliant firms.


Kajian ini mengkaji penentu dan kestabilan pembayaran dividen di Malaysia dalam tempoh 2007 hingga 2016. Tujuan penyelidikan ini adalah, (1) untuk mengkaji kestabilan dividen sesaham, (2) untuk memeriksa penentu hasil dividen; dan (3) untuk mengkaji pengaruh dividen per saham pada kadar pertumbuhan yang berterusan bagi syarikat patuh Syariah di Malaysia. Penyelidikan ini menggunakan model statik dan model dinamik yang menggunakan Generalized Method of Moment. Hasilnya menunjukkan bahawa pendapatan sesaham yang stabil mampu membuat firma membayar dividen yang lebih besar. Di samping itu, dividen yang lebih tinggi dari tahun sebelumnya dengan pelarasan kelajuan yang lebih rendah menunjukkan bahawa terdapat kelancaran dan kestabilan pembayaran dividen yang tinggi. Hasil penentu hasil dividen menunjukkan lima faktor iaitu hasil dividen yang tertinggal, ukuran firma, pertumbuhan penjualan, leverage, dan nilai pasar terhadap nilai buku memiliki pengaruh yang signifikan terhadap hasil dividen, dengan hasil dividen yang tertinggal dan ukuran firma yang dinyatakan memiliki kesan signifikan positif, sementara pertumbuhan penjualan, leverage, dan nilai pasaran hingga nilai buku mempunyai kesan signifikan negatif. Di samping itu, hasil menunjukkan bahawa dividen sesaham mempunyai kesan positif yang signifikan terhadap kadar pertumbuhan yang berterusan. Penemuan dari kajian ini penting bagi pasukan pengurusan syarikat dalam menentukan dasar dividen yang sesuai agar syarikat dapat mengekalkan pembayaran dividen yang stabil dan mempunyai kewangan syarikat sihat. Hasil ini juga memberikan pemahaman mengenai tingkah laku dasar dividen di Malaysia, terutama pada syarikat patuh Syariah yang disenaraikan di Malaysia.

Kata kunci: Dasar dividen, Analisis data panel, firma patuh Syariah yang disenaraikan di Malaysia.


Dividend policy; Panel data analysis; Malaysian Public-listed Shariah-compliant firms.

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