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Corporate Dividend Policy and Behaviour: The Malaysian Experience

IIMA Working Paper No. 2001-11-01

23 Pages Posted: 12 Feb 2002  

I. M. Pandey

University of Delhi; Delhi School of Business

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

Suggested Citation

Pandey, I. M., Corporate Dividend Policy and Behaviour: The Malaysian Experience (November 2001). IIMA Working Paper No. 2001-11-01. Available at SSRN: or

Indra Mohan Pandey (Contact Author)

University of Delhi ( email )

University Road
Kirti Nagar
Delhi, DE New Delhi 110 007

Delhi School of Business ( email )

VIPS - Technical Campus
AU Block, Outer Ring Road
Delhi, 110034


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