Evidence of Dividend Catering Theory in Malaysia: Implications for Investor Sentiment
This study investigates the key determinants of corporate performance in Malaysia. Using panel data (2002-2007) of 361 companies listed in Malaysia, the study finds dividend per share, use of debt, number of board members, and last year’s performance to be the most significant determinants of corpor...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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VIZJA University
2013-12-01
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| Series: | Contemporary Economics |
| Online Access: | http://ce.vizja.pl/en/download-pdf/id/327 |
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| _version_ | 1849764349229400064 |
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| author | Mamunur Rashid Fauzias Mat Nor Izani Ibrahim |
| author_facet | Mamunur Rashid Fauzias Mat Nor Izani Ibrahim |
| author_sort | Mamunur Rashid |
| collection | DOAJ |
| description | This study investigates the key determinants of corporate performance in Malaysia. Using panel data (2002-2007) of 361 companies listed in Malaysia, the study finds dividend per share, use of debt, number of board members, and last year’s performance to be the most significant determinants of corporate performance across four selected industries: trading or services, property, consumer products, and industrial products. This study also finds that dividend per share is influenced by market performance and is followed by last year’s dividend and size of the dividend. These findings exhibit the presence of dividend catering incentives. As such, market demand for dividends drives corporate dividends. The study concludes that investor sentiment influences corporate decisions in Malaysia. |
| format | Article |
| id | doaj-art-be3eb55be2da423d8914ce4d94a39ccb |
| institution | DOAJ |
| issn | 2084-0845 |
| language | English |
| publishDate | 2013-12-01 |
| publisher | VIZJA University |
| record_format | Article |
| series | Contemporary Economics |
| spelling | doaj-art-be3eb55be2da423d8914ce4d94a39ccb2025-08-20T03:05:09ZengVIZJA UniversityContemporary Economics2084-08452013-12-0174113810.5709/ce.1897-9254.125327Evidence of Dividend Catering Theory in Malaysia: Implications for Investor SentimentMamunur Rashid0Fauzias Mat Nor1Izani Ibrahim2---This study investigates the key determinants of corporate performance in Malaysia. Using panel data (2002-2007) of 361 companies listed in Malaysia, the study finds dividend per share, use of debt, number of board members, and last year’s performance to be the most significant determinants of corporate performance across four selected industries: trading or services, property, consumer products, and industrial products. This study also finds that dividend per share is influenced by market performance and is followed by last year’s dividend and size of the dividend. These findings exhibit the presence of dividend catering incentives. As such, market demand for dividends drives corporate dividends. The study concludes that investor sentiment influences corporate decisions in Malaysia.http://ce.vizja.pl/en/download-pdf/id/327 |
| spellingShingle | Mamunur Rashid Fauzias Mat Nor Izani Ibrahim Evidence of Dividend Catering Theory in Malaysia: Implications for Investor Sentiment Contemporary Economics |
| title | Evidence of Dividend Catering Theory in Malaysia: Implications for Investor Sentiment |
| title_full | Evidence of Dividend Catering Theory in Malaysia: Implications for Investor Sentiment |
| title_fullStr | Evidence of Dividend Catering Theory in Malaysia: Implications for Investor Sentiment |
| title_full_unstemmed | Evidence of Dividend Catering Theory in Malaysia: Implications for Investor Sentiment |
| title_short | Evidence of Dividend Catering Theory in Malaysia: Implications for Investor Sentiment |
| title_sort | evidence of dividend catering theory in malaysia implications for investor sentiment |
| url | http://ce.vizja.pl/en/download-pdf/id/327 |
| work_keys_str_mv | AT mamunurrashid evidenceofdividendcateringtheoryinmalaysiaimplicationsforinvestorsentiment AT fauziasmatnor evidenceofdividendcateringtheoryinmalaysiaimplicationsforinvestorsentiment AT izaniibrahim evidenceofdividendcateringtheoryinmalaysiaimplicationsforinvestorsentiment |