Determinants of dividend policy among public listed firms based in Malaysia

Abstract

Dividend policy represents a crucial financial decision that reflects a firm’s approach in distributing earnings to shareholders while maintaining sufficient internal resources for future growth. This study aims to identify and examine the key determinants that influence dividend policy among publicly listed companies in Malaysia. Specifically, this study explores the relationship between firm-specific factors, including profitability, firm size, liquidity and leverage. By integrating various theoretical perspectives, including the Bird-in-the-Hand Theory, Signaling Theory, Clientele Effect and Pecking Order Theory, this paper develops a conceptual framework to provide a comprehensive understanding of dividend policy decisions within the Malaysian corporate environment