ANALYSIS ON DIVIDEND PAYOUT: EMPIRICAL EVIDENCE OF PROPERTY COMPANIES IN MALAYSIA

Abstract

This study is attempt to identify the determinants of dividend payout on property companies listed in Malaysia. By employing a static panel data method, this study applying a yearly data for 11 years started from 2004 until 2014 for 50 selected companies in property sector. The dependent variable in this study is dividend paid out ratio while liquidity, leverage, profitability and size of company represent as the independent variables. The data being tested using Pooled Ordinary Least Square (POLS) Regression, Random Effect (BreuschPagan Lagrangian Multiplier Test), Fixed Effect (Hausman Fixed Effect) and Random Effect Generalized Least Square (GLS) Regression and has adopted Random Effect model. The finding shows that only profitability resulted in significant negative relationship with dividend payout while the others have no relationship respectively with dividend payout of property companies.