Corporate Dividend Policy and Behaviour: The Malaysian Experience

IIMA Working Paper No. 2001-11-01

23 Pages Posted: 12 Feb 2002

See all articles by I. M. Pandey

I. M. Pandey

University of Delhi; School of Management

Date Written: November 2001

Abstract

This study examines corporate dividend behaviour of the Kuala Lumpur Stock Exchange (KLSE) companies. Our results show the influence of industry on payout ratios. Payout ratios also vary significantly across time. The results of multinomial logit analysis reveal that the dividend behaviour of the Malaysian companies is sensitive to the changes in earnings. Further, using Lintner's framework and panel regression methodology, we find evidence of less stable dividend policies being pursued by the Malaysian companies. The results of the two-way fixed effects model reveal that there are strong individual firm and time effects in our data.

Keywords: target payout, dividend stability, speed of adjustment

JEL Classification: G35

Suggested Citation

Pandey, Indra Mohan, Corporate Dividend Policy and Behaviour: The Malaysian Experience (November 2001). IIMA Working Paper No. 2001-11-01, Available at SSRN: https://ssrn.com/abstract=299912 or http://dx.doi.org/10.2139/ssrn.299912

Indra Mohan Pandey (Contact Author)

University of Delhi ( email )

University Road
Kirti Nagar
Delhi, DE New Delhi 110 007
India

School of Management ( email )

Pathumthani 12120
Thailand

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
2,655
Abstract Views
9,610
Rank
9,519
PlumX Metrics