Dividend Payout Policy: The Case of Islamic and Non-Islamic Banks in Malaysia

• Main Authors: Iffah Nazurah, Ibrahim, Nurul Syuhada, Zaidi, Mohamad, Jais
• Format: Article
• Language: English
• Published: Human Resource Management Academic Research Society 2023
• Subjects: HG Finance
• Online Access: http://ir.unimas.my/id/eprint/43878/1/dividend-payout-policy-the-case-of-islamic-and-non-islamic-banks-in-malaysia.pdf; http://ir.unimas.my/id/eprint/43878/; http://efaidnbmnnnibpcajpcglclefindmkaj/https://hrmars.com/papers_submitted/15904/dividend-payout-policy-the-case-of-islamic-and-non-islamic-banks-in-malaysia.pdf

This research aims to identify the relationship between profitability, lagged dividends, financial leverage, and revenue growth towards the dividend payout of the Islamic and nonIslamic banks in Malaysia. The research examines ten banks listed by Bank Negara Malaysia, where five Islamic banks and five non-Islamic banks in Malaysia were chosen. The data were analyzed from the period 2016 to 2020. The findings revealed that profitability and financial leverage significantly impact dividend payout for non-Islamic banks. However, lagged dividend and revenue growth, significantly impact dividend payout for Islamic banks. The findings from this research provide a direction for potential shareholders to understand the financial health of companies to make better investment decisions. Besides, the results are essential for the board of directors to revise the dividend policy by considering the factors that significantly impact dividend payments.