Dividend payout policies of politically connected firms: Evidence from Malaysia
This study expounds on the debate regarding dividend payouts for different types of politically tied firms in Malaysia. We recognize the heterogeneity of political ties of politically connected firms (PCFs) by government-linked companies (GLCs) and non-GLC PCFs. The results show that PCFs are positi...
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my.um.eprints.269172022-04-14T02:10:23Z http://eprints.um.edu.my/26917/ Dividend payout policies of politically connected firms: Evidence from Malaysia Zainudin, Rozaimah Khaw, Karren Lee-Hwei HB Economic Theory Business HG Finance This study expounds on the debate regarding dividend payouts for different types of politically tied firms in Malaysia. We recognize the heterogeneity of political ties of politically connected firms (PCFs) by government-linked companies (GLCs) and non-GLC PCFs. The results show that PCFs are positively related to dividend payouts and that PCFs, specifically GLCs, pay higher dividends than their counterparts. Additionally, our results demonstrate that high-and low-levered GLCs consistently pay higher dividends than non-GLC PCFs and non-PCFs. These findings imply that GLCs implement special dividend policies, and therefore, a high GLC payout might not be indicative of actual performance. In brief, shareholders and potential investors should be cautious in interpreting firm payout signals. Copyright (C) 2020, Borsa Istanbul Anonim Sirketi. Production and hosting by Elsevier B.V. Elsevier 2021-12 Article PeerReviewed Zainudin, Rozaimah and Khaw, Karren Lee-Hwei (2021) Dividend payout policies of politically connected firms: Evidence from Malaysia. Borsa Istanbul Review, 21 (4). pp. 384-393. ISSN 2214-8450, DOI https://doi.org/10.1016/j.bir.2020.12.005 <https://doi.org/10.1016/j.bir.2020.12.005>. 10.1016/j.bir.2020.12.005 |
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HB Economic Theory Business HG Finance Zainudin, Rozaimah Khaw, Karren Lee-Hwei Dividend payout policies of politically connected firms: Evidence from Malaysia |
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This study expounds on the debate regarding dividend payouts for different types of politically tied firms in Malaysia. We recognize the heterogeneity of political ties of politically connected firms (PCFs) by government-linked companies (GLCs) and non-GLC PCFs. The results show that PCFs are positively related to dividend payouts and that PCFs, specifically GLCs, pay higher dividends than their counterparts. Additionally, our results demonstrate that high-and low-levered GLCs consistently pay higher dividends than non-GLC PCFs and non-PCFs. These findings imply that GLCs implement special dividend policies, and therefore, a high GLC payout might not be indicative of actual performance. In brief, shareholders and potential investors should be cautious in interpreting firm payout signals. Copyright (C) 2020, Borsa Istanbul Anonim Sirketi. Production and hosting by Elsevier B.V. |
format |
Article |
author |
Zainudin, Rozaimah Khaw, Karren Lee-Hwei |
author_facet |
Zainudin, Rozaimah Khaw, Karren Lee-Hwei |
author_sort |
Zainudin, Rozaimah |
title |
Dividend payout policies of politically connected firms: Evidence from Malaysia |
title_short |
Dividend payout policies of politically connected firms: Evidence from Malaysia |
title_full |
Dividend payout policies of politically connected firms: Evidence from Malaysia |
title_fullStr |
Dividend payout policies of politically connected firms: Evidence from Malaysia |
title_full_unstemmed |
Dividend payout policies of politically connected firms: Evidence from Malaysia |
title_sort |
dividend payout policies of politically connected firms: evidence from malaysia |
publisher |
Elsevier |
publishDate |
2021 |
url |
http://eprints.um.edu.my/26917/ |
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1735409475636953088 |
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13.159267 |