Corporate Dividend Policy and Behaviour: The Malaysian Experience
IIMA Working Paper No. 2001-11-01
23 Pages Posted: 12 Feb 2002
Date Written: November 2001
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
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