TY - JOUR
T1 - The influence of government shareholding on dividend policy in Malaysia
AU - Sinnadurai, Philip
AU - Subramaniam, Ravichandran
AU - Devi, Susela
N1 - Funding Information:
The authors are grateful to seminar participants at UNITAR International University, Malaysia, Macquarie University (Australia Asia Research Network), Australia, Monash University, Malaysia, the Malaysian Institute of Corporate Governance, Macquarie University (Department of Accounting and Corporate Governance), and the Malaysian Finance Association conference. We also appreciate suggestions from Ferdinand Gul, the late Geoff Loudon, Sakthi Mahenthiran, Ghon Rhee, and Terry Walter. We are grateful to Neoh Soon Kean from Dynaquest Sendirian Berhad for allowing the use of data from Dynaquest Sendirian Berhad (2006–2014). We are thankful to Wong Ping Ling and other analysts from Dynaquest Sendirian Berhad for direct data provision. We would like to express appreciation to Mergent Online, Bursa Malaysia Berhad, and Datastream for providing annual report data.
Publisher Copyright:
© 2021 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https:// creativecommons.org/licenses/by/ 4.0/).
PY - 2021/9
Y1 - 2021/9
N2 - We investigate the association between dividend policy and government shareholding, using Malaysian data. We hypothesize a positive association. We contribute to the literature about dividend policy. Unique features of our study include adaptations to the Malaysian institutional setting, with respect to usage of dividend relevance theory, research methodology, and data collection. The methodology entails two-stage least squares regressions. Dividend payout and dividend yield are the dependent variables in tests of the research hypothesis. The independent variable of interest measures ownership by government-related institutional investors. The sample comprises 1190 company-years, over the investigation period 2006–2013. The results support our hypothesis. The evidence suggests that this support principally emanates from companies with low-quality corporate governance.
AB - We investigate the association between dividend policy and government shareholding, using Malaysian data. We hypothesize a positive association. We contribute to the literature about dividend policy. Unique features of our study include adaptations to the Malaysian institutional setting, with respect to usage of dividend relevance theory, research methodology, and data collection. The methodology entails two-stage least squares regressions. Dividend payout and dividend yield are the dependent variables in tests of the research hypothesis. The independent variable of interest measures ownership by government-related institutional investors. The sample comprises 1190 company-years, over the investigation period 2006–2013. The results support our hypothesis. The evidence suggests that this support principally emanates from companies with low-quality corporate governance.
KW - Dividend policy
KW - Government shareholding
KW - Malaysia
UR - http://www.scopus.com/inward/record.url?scp=85115135110&partnerID=8YFLogxK
U2 - 10.3390/ijfs9030049
DO - 10.3390/ijfs9030049
M3 - Article
AN - SCOPUS:85115135110
SN - 2227-7072
VL - 9
JO - International Journal of Financial Studies
JF - International Journal of Financial Studies
IS - 3
M1 - 49
ER -