The effect of dividend policy on firm performance in Malaysia / Nurin Batrisyia Ahmad Faizul

• Main Author: Ahmad Faizul, Nurin Batrisyia
• Format: Thesis
• Language: English
• Published: 2022
• Subjects: Dividends. Stock dividends. Dividend reinvestment
• Online Access: https://ir.uitm.edu.my/id/eprint/96697/1/96697.pdf; https://ir.uitm.edu.my/id/eprint/96697/

Firm performance is a subjective evaluation of a company's capacity to produce revenue and expand operations utilizing assets from its primary method of operation. A dividend policy is a collection of rules or guidelines that a company uses to determine how much earnings to distribute to shareholders. The purpose of this study is to investigate whether the dividend policy makes an impact on firm performance in Malaysia. One of the most prominent concepts in organizational research is firm performance. Despite its significance, and despite the numerous developmental critiques that have appeared over the years, performance remains a difficult concept to apply in a scientifically rigorous manner. The question of whether a firm's dividend policy decision influences its performance remains unanswered. Previous researchers have mainly focused on developed countries while developing countries like Malaysia have limited research. Data collected have been used is from annual reports data of 10 Malaysia companies listed in Kuala Lumpur Stock Exchange from 2016 to 2020. Tobin's Q has been used as the proxy to measure financial performance. The independent variables used in this study are DPS, DPR, EPS, financial leverage, and firm size. In this study, the firm director will gain a new perspective on the findings regarding the effect of dividend policy on firm performance in Malaysia. Eviews is the program that was used to quantify the outcome. The multiple linear regression test is carried out using the t-test and the f-test. R-squared and normality tests were included in the assumption test.