Remuneration Committee's Impact on Firm Dividends in Malaysia: A Panel Approach
Journal of Global Economics, Management and Business Research, Vol. 1, Issue 1, pp 1-11, 2015
19 Pages Posted: 28 Apr 2015
Date Written: April 28, 2015
This study investigates the remuneration committee and its specifications, and their relations to the dividends behavior of the firm. The corporate governance variables include existence of remuneration committee, number of independent members of committee, remuneration committee size, CEO or General Manager’s membership in the committee, and size of board of directors. Besides them, firm size measured by total assets, revenue, and market value as well as firm leverage ratio, return on assets, and return on equity were controlled. The analyses were conducted separately on both dividends per share and dividend yields. Data set includes a panel of 52 companies listed in Bursa Malaysia for the period of 2001 to 2010. Results significantly indicate that all corporate governance variables have significant impact on the dividend per share paid by firms. However, for dividend yields, except the existence of remuneration committee variable, others show a significant effect.
Keywords: Dividends, Corporate Governance, Remuneration Committee, Board of Directors, Malaysia
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