The Influence of Government Shareholding on Dividend Policy in Malaysia

Sinnadurai, Philip; Subramaniam, Ravichandran; Devi, Susela

doi:10.3390/ijfs9030049

Cited by 4 publications

(4 citation statements)

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“…Subsequent studies have adapted the seminal models for the institutional features of other countries. For example, Phan et al (2020) and Sinnadurai et al (2021a) use variants of these seminal models to estimate the investment efficiency of Malaysian companies. Hence, a suggested direction for empirical research in corporate finance is to refer to the literature on managerial overinvestment, for potential explanations for initial IPO underpricing and (by extension) long-run IPO underperformance.…”

Section: Implications Of the Three Malaysian Papers Regarding The The...mentioning

confidence: 99%

“…For example, overinvestment results in the diversion of shareholder resources and hence constitutes an agency cost (Gao and Yu 2020). Government ownership of listed companies may exacerbate the problem of overinvestment (Sinnadurai et al 2021a). Companies subject to government ownership may also be politically connected, with an adviser guiding their business model, to be friendly to the government's blueprint for economic development.…”

Section: Synthesismentioning

confidence: 99%

“…Companies subject to government ownership may also be politically connected, with an adviser guiding their business model, to be friendly to the government's blueprint for economic development. Management may be under heightened pressure to select the political connection's "pet" projects to ensure continuity of support (Sinnadurai et al 2021a). Governments across the globe own shares in unlisted entities, in addition to listed companies.…”

Section: Synthesismentioning

confidence: 99%

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“Empirical Corporate Finance: Opportunities and Challenges”—Editorial Synthesis of the Special Issue

Sinnadurai

2022

JRFM

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This concept paper synthesises the special issue with an integrated discussion of all four papers published therein, from the viewpoint of the theme of this special issue: opportunities and challenges for future empirical research in corporate finance. The four papers highlight that future empirical research faces the challenge of acknowledging fundamental paradigms in the literature. These include analytical models of capital structure, agency theory, the literature on Initial Public Offering anomalies and earnings valuation. An opportunity for future empirical research is to use these foundations to contribute to emerging paradigms. The latter include the empirical evidence of the shareholder wealth effects of government investment, managerial overinvestment and the acknowledgement of unlisted entities within capital markets research.

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Section: Implications Of the Three Malaysian Papers Regarding The The...mentioning

confidence: 99%

Section: Synthesismentioning

confidence: 99%

Section: Synthesismentioning

confidence: 99%

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“Empirical Corporate Finance: Opportunities and Challenges”—Editorial Synthesis of the Special Issue

Sinnadurai

2022

JRFM

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“…One study investigated the link between corporate board attributes, board behavior, and financial leverage using dividend payout records at Bursa Malaysia (Tahir et al, 2023). Another study explored the influence of government shareholding on dividend policy in Malaysia (Sinnadurai et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

The Effect of Board Independence on Dividend Policy among Manufacturing Listed Companies in Malaysia

Devi,

Ramakrishnan,

Mustafa

et al. 2024

IJARBSS

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The aim of this study is to explore the effect of independent directors on dividend policy among manufacturing listed companies in Malaysia. The panel data of this study was obtained from Datastream of manufacturing listed companies within the FTSE Bursa Malaysia Top 100 index over the period of 2012-2021. For this purpose, a sample of 29 companies was selected using the census method. The firm's panel was analyzed using descriptive statistics and Pooled Ordinary Least Square (OLS). Fixed effects technique was chosen to investigate the influence of board independence on dividend policy, proxied with dividend yield and dividend per share (Market-Based Measure). Descriptive analysis presented that on average, companies' independent directors were 48% of the board size which does not meet the 50% requirement number of independent directors as stated in the Malaysian Code on Corporate Governance 2021. In addition, the finding also shows that board independence and dividend policy is significantly and negatively related. Therefore, manufacturing companies can advocate for higher dividends by limiting a number of board independence.

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Dynamics of corporate governance and dividend policy alliance: a meta-analytical approach

Narang,

Gupta,

Tripathy

2024

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Purpose The present study uses a meta-analysis technique to explore the association between corporate governance and dividend policy. The extant literature delivers inconclusive findings on the relationship between corporate governance and dividend policy. Therefore, this study aims to resolve the issues and deliver comprehensive results. Design/methodology/approach The study involves a meta-analysis of 53 research studies using preferred reporting items for systematic reviews and meta-analyses and population, intervention, comparison, outcome and study design approaches. The paper examines the impact of moderators: corporate governance structure (Anglo-American, communitarian or emerging system) and dividend distribution metrics (dividend over net income, dividend over total assets and absolute amount of dividend/dividend per share). The study involves subgroup analysis and meta-regression analysis to examine the impact of moderators. Findings The study’s results specify that board size and percentage of female directors significantly impact the dividend decisions of the company. In addition, subgroup analysis and meta-regression results demonstrate that dividend measurement proxy moderates the association between corporate governance and dividend policy. Originality/value Based on the existing literature surveyed, to the best of the authors’ knowledge, the current study is the first to conduct a meta-analysis on the relationship between corporate governance and dividend policy. This paper is unique and the first one of its kind (to the best of the authors’ knowledge) to cover all these moderating variables under an umbrella and consolidate the results to understand the existing knowledge and direct future research in the area of corporate governance and dividend decisions.

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The Influence of Government Shareholding on Dividend Policy in Malaysia

Cited by 4 publications

References 51 publications

“Empirical Corporate Finance: Opportunities and Challenges”—Editorial Synthesis of the Special Issue

“Empirical Corporate Finance: Opportunities and Challenges”—Editorial Synthesis of the Special Issue

The Effect of Board Independence on Dividend Policy among Manufacturing Listed Companies in Malaysia

Dynamics of corporate governance and dividend policy alliance: a meta-analytical approach

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