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Impact Of Corporate Governance And Firm-Level Control Variables On Dividend Policy Of Service Trade Sector Of Malaysia

Author

Listed:
  • Jahanzeb, Agha

    (Assistant Professor, Department of Business Administration, Sukkur Institute of Business Administration, Sukkur, Sindh, Pakistan)

  • Memon, Pervaiz Ahmed

    (Assistant Professor, Department of Business Administration, Sukkur Institute of Business Administration, Sukkur, Sindh, Pakistan)

  • Tunio, Javed Ali

    (Lecturer, Department of Business Administration, Sukkur Institute of Business Administration, Sukkur, Sindh, Pakistan)

  • Abbas Shah, Syed Saeed

    (Assistant Professor, Department of Business Administration, Sukkur Institute of Business Administration, Sukkur, Sindh, Pakistan)

Abstract

This paper empirically investigates the impact of corporate governance factors (i.e. board size, board independence and CEO ownership) and firm-level control variables (i.e. firm size, firm growth and firm profitability) on the dividend payout policy among the service sector companies of Malaysia that are listed on Bursa Malaysia. Ordinary least square model was used to estimate the results. Sample consisted of 113 service sector firms from the period of 2009 to 2013. The results show that the profitable companies with large boards and less growth tend to pay higher dividends. Findings can be interpreted as that the profitable companies are sharing their profits with their shareholders in terms of dividends to give positive message to the market.

Suggested Citation

  • Jahanzeb, Agha & Memon, Pervaiz Ahmed & Tunio, Javed Ali & Abbas Shah, Syed Saeed, 2016. "Impact Of Corporate Governance And Firm-Level Control Variables On Dividend Policy Of Service Trade Sector Of Malaysia," Journal of Economic and Social Development, Clinical Journals Press, vol. 3(02), pages 01-10, September.
    • Handle: RePEc:ris:joeasd:0143
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    References listed on IDEAS

    as
    1. Barclay, Michael J & Smith, Clifford W, Jr, 1995. "The Maturity Structure of Corporate Debt," Journal of Finance, American Finance Association, vol. 50(2), pages 609-631, June.
    2. Mohammed Amidu & Joshua Abor, 2006. "Determinants of dividend payout ratios in Ghana," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 7(2), pages 136-145, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Corporate governance; Dividend payout policy; Control variables; Service sector;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists

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