Contents TOC o “1-3” h z u Chapter 1

Contents
TOC o “1-3” h z u Chapter 1: Research Overview PAGEREF _Toc519086151 h 31.1 Introduction PAGEREF _Toc519086152 h 31.2 Background of the study PAGEREF _Toc519086153 h 31.2.1 Dividend Policy in Malaysia PAGEREF _Toc519086154 h 31.3 Problem Statement PAGEREF _Toc519086155 h 41.4 Research Objectives PAGEREF _Toc519086156 h 51.4.1 General Objective PAGEREF _Toc519086157 h 51.4.2 Specific Objectives PAGEREF _Toc519086158 h 51.5 Research Questions PAGEREF _Toc519086159 h 51.6 Scope of study PAGEREF _Toc519086160 h 51.7 Significance contribution of study PAGEREF _Toc519086161 h 51.8 Limitation of study PAGEREF _Toc519086162 h 5Chapter 2 Literature Review PAGEREF _Toc519086163 h 62.1 Dividend Theory PAGEREF _Toc519086164 h 62.1.1 Agency Theory PAGEREF _Toc519086165 h 62.1.2 Signalling Theory PAGEREF _Toc519086166 h 62.1.3 Bird in Hand Theory PAGEREF _Toc519086167 h 62.1.4 Pecking Order Theory PAGEREF _Toc519086168 h 62.2 Review of Literature PAGEREF _Toc519086169 h 62.2.1 Leverage and Dividend Policy PAGEREF _Toc519086170 h 62.2.2 Dividend Policy & Liquidity PAGEREF _Toc519086171 h 72.2.3 Dividend Policy & Profitability PAGEREF _Toc519086172 h 72.2.5 Dividend Policy & Corporate Taxation PAGEREF _Toc519086173 h 72.3 Hypotheses Development PAGEREF _Toc519086174 h 72.3.1 Leverage and Dividend Policy PAGEREF _Toc519086175 h 72.4 Research Framework PAGEREF _Toc519086176 h 7Chapter 3: Research Design Methodology PAGEREF _Toc519086177 h 83.1 Sample Selection PAGEREF _Toc519086178 h 83.1.1 Population PAGEREF _Toc519086179 h 83.1.2 Sampling Technique PAGEREF _Toc519086180 h 83.1.3 Sample PAGEREF _Toc519086181 h 83.2 Data Collection Method PAGEREF _Toc519086182 h 83.3 Description of Variables PAGEREF _Toc519086183 h 83.3.1 Independent Variable: Leverage PAGEREF _Toc519086184 h 83.3.2 Independent Variable: Liquidity PAGEREF _Toc519086185 h 83.3.3 Independent Variable: Profitability PAGEREF _Toc519086186 h 83.3.5 Independent Variable: Corporate Taxation PAGEREF _Toc519086187 h 83.3.6 Dependent Variable: Dividend Policy PAGEREF _Toc519086188 h 83.3.7 Control Variable: Firm Size PAGEREF _Toc519086189 h 83.4 Data Analysis PAGEREF _Toc519086190 h 83.4.1 Descriptive Analysis PAGEREF _Toc519086191 h 83.4.2 Normality Test PAGEREF _Toc519086192 h 83.4.3 Correlation Analysis PAGEREF _Toc519086193 h 83.4.4 Multicollinearity PAGEREF _Toc519086194 h 83.4.5 Multiple Regression PAGEREF _Toc519086195 h 8References PAGEREF _Toc519086196 h 9

Chapter 1: Research Overview1.1 IntroductionDividend decision referring to decision in deciding the amount or portion of earnings to be distributed to the shareholders as a dividend as well as decide the amount to be retained by the company. Dividend distribution could be seen as a form of reward to the shareholders due to their willingness in financial investment contribution to the company, hence this method of reward could fulfil their objective in maximising their interest.
On the other hand, the level of investment opportunities will help the company in deciding the amount of earnings to be retained. Therefore, it is possible for the companies to develop and manage an optimum dividend policy divides the earnings into dividend and retained earnings.
Dividend policy is “the practice that management follows in making dividend pay out decisions or, in other words, the size and pattern of cash distributions over time to shareholders” ADDIN CSL_CITATION { “citationItems” : { “id” : “ITEM-1”, “itemData” : { “DOI” : “10.1108/RIBS-02-2014-0030”, “ISBN” : “RIBS-02-2014-0030.pdf”, “ISSN” : “2059-6014”, “PMID” : “42012058”, “abstract” : “Purpose u2013 This study aims to investigate the determinants of the dividend policy of public listed companies in Malaysia. The factors examined in this study include earnings, cash flows, free cash flows, debt level, growth, investment, size, largest shareholders, risk and lagged dividend. Design/methodology/approach u2013 Data were obtained from the relevant databases and annual reports of the sampled companies. The study examines a total of 147 listed companies. In analyzing the data, the study used fixed and random effects, pooled least squares model, robust standard errors on fixed effects and random-effects models. Findings u2013 The results revealed the five factors that are earnings, debt, size, investment and largest shareholder have a significant influence on dividend policy, with earnings, firm size and investment revealed to have a positive significant effect, while debt and large shareholders have a negative significant effect. Practical implications u2013 The findings from this study are useful to the boar…”, “author” : { “dropping-particle” : “”, “family” : “Yusof”, “given” : “Yusniliyana”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Ismail”, “given” : “Suhaiza”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” } , “container-title” : “Review of International Business and Strategy”, “id” : “ITEM-1”, “issue” : “1”, “issued” : { “date-parts” : “2016” }, “page” : “88-99”, “title” : “Determinants of dividend policy of public listed companies in Malaysia”, “type” : “article-journal”, “volume” : “26” }, “uris” : “http://www.mendeley.com/documents/?uuid=1003f5d1-25d9-4589-be6f-d1d9e6c44ded” } , “mendeley” : { “formattedCitation” : “(Yusof & Ismail, 2016)”, “plainTextFormattedCitation” : “(Yusof & Ismail, 2016)”, “previouslyFormattedCitation” : “(Yusof & Ismail, 2016)” }, “properties” : { }, “schema” : “https://github.com/citation-style-language/schema/raw/master/csl-citation.json” }(Yusof & Ismail, 2016). In decade, dividend decisions raise financial issue and it is one of the top ten complex matters in finance, due to its expressive effect towards investment and financial decision ADDIN CSL_CITATION { “citationItems” : { “id” : “ITEM-1”, “itemData” : { “DOI” : “10.17485/ijst/2016/v9i15/90568”, “ISSN” : “09745645”, “abstract” : “Background/Objectives: This topic on the impact of dividend policy on shareholders wealth of the companies is one of the most researched topics in finance. The main objective of this paper is to find out the dividend policy’s impact on shareholders wealth. Method/Statistical Analysis: The ten companies listed in NIFTY PHARMA of NSE have been considered for the study. Fifteen years data have been used (2001 to 2015). With the help of previous literature, MPS (Market Price Per Share) used to measure Shareholders wealth and the predictor variables are Price Earnings Ratio (PER), Dividend Per Share (DPS), Earnings Per Share (EPS), Total Assets (TA) and Cash and Bank Balance by Total Assets (CABBBYTA) were used by representing Dividend, Risk, Earnings, Firm Size and Liquidity of the companies. The Descriptive statistics and Normality test (Jarque – Bera) test found that the data were normally distributed. The conditions for regression like viz., Breusch-Pagan-Godfrey Heteroskedasticity Test, Breusch-Godfrey Serial Correlation LM Test, VIF for Multicollinearity, Augmented Dickey-Fuller test for unit root were used and found that the data were homogenous, free from auto correlation, multicollinearity and unit root. Eviews 7 Econometrics software package was used. Findings: Regression results show that the dividend, risk and liquidity of the companies impact shareholders wealth. Size and Earnings of the companies were insignificant with the shareholders wealth.”, “author” : { “dropping-particle” : “”, “family” : “Thirumagal”, “given” : “P. G.”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Vasantha”, “given” : “S.”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” } , “container-title” : “Indian Journal of Science and Technology”, “id” : “ITEM-1”, “issue” : “15”, “issued” : { “date-parts” : “2016” }, “title” : “Dividend policy on shareholders wealth-evidences from Indian pharmaceutical industry”, “type” : “article-journal”, “volume” : “9” }, “uris” : “http://www.mendeley.com/documents/?uuid=307325d8-d67f-478c-8c6e-4a28efbf903d” } , “mendeley” : { “formattedCitation” : “(Thirumagal ; Vasantha, 2016)”, “plainTextFormattedCitation” : “(Thirumagal ; Vasantha, 2016)”, “previouslyFormattedCitation” : “(Thirumagal ; Vasantha, 2016)” }, “properties” : { }, “schema” : “https://github.com/citation-style-language/schema/raw/master/csl-citation.json” }(Thirumagal & Vasantha, 2016).
Yusof & Ismail (2016) expressed that the companies would be relied and depends more on debt or other external financing method in the case if the companies pay extremely high dividend, since it would result in less retained earnings to finance the future profitable project or investments. In contrast, the company’s dependence on the external financing would be reduce if the companies decide to pay fewer dividend, indicate that the company will have more internal earnings for future project plans.
1.2 Background of the study1.2.1 Dividend Policy in MalaysiaBursa Malaysia website (2018) has been provided with guidance on setting Dividend Policy for public listed companies in Malaysia in which can be considered by the companies in managing company’s level of dividend’s payment. The factors that mentioned in was including the level of availability of liquidity in the companies, return on equity (ROE) and retained earnings of the companies, as well as companies levels of capital expenditure and plans on other investment, if any.

1.3 Problem StatementWhile Bursa Malaysia (2018) has provided the public listed companies in Malaysia with the guidance on factors to be considered for dividend policy decision, Focus Malaysia (2017) however highlighted that Malaysian public listed companies may not express their interest in maximizing shareholder’s wealth, since they are not introducing with their dividend policy in explaining the dividend levels to pay as a percentage of their net yearly earnings.
Even there are many empirical research on determinants of dividend policy around the world either in developed economies or in emerging economies, however, there are no general consensus factors that can be considered for dividend policy decision ADDIN CSL_CITATION { “citationItems” : { “id” : “ITEM-1”, “itemData” : { “ISSN” : “2090-4274”, “abstract” : “Dividend policy is a decision made by an organization to determine the amount of dividend to be paid and the level of the profit to be retained. Prior studies claimed that dividend policy can help to reduce the agency problems in the organization. Thus, this decision is very important. However, todate, there is no general consensus on the factors which influence dividend policy. Therefore, this study aims to examine the determinants of dividend policy among public-listed firms in Malaysia. Secondary data was hand-collected from the annual reports of the listed firms for a period of five years. This study employs multiple regression to estimate the relationship between the determinants and dividend payout decisions. The results indicate that investment opportunity, liquidity and firm size significantly influence the dividend payout of Malaysian listed firms. This study contributes to the literature related to dividend payout in developing countries, specifically in the Malaysian business environment. It also provides information to the managers about how their decisions would affect the agency costs of the organization”, “author” : { “dropping-particle” : “”, “family” : “Mui”, “given” : “Yong Teck”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Mustapha”, “given” : “Mazlina”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” } , “container-title” : “Journal of Applied Environmental and Biological Sciences”, “id” : “ITEM-1”, “issue” : “March”, “issued” : { “date-parts” : “2016” }, “page” : “48-54”, “title” : “Determinants of Dividend Payout Ratio: Evidence from Malaysian Public Listed Firms”, “type” : “article-journal”, “volume” : “6” }, “uris” : “http://www.mendeley.com/documents/?uuid=d0aa192d-7ee8-4bfc-ab6b-fb6a912f6259” } , “mendeley” : { “formattedCitation” : “(Mui ; Mustapha, 2016)”, “plainTextFormattedCitation” : “(Mui ; Mustapha, 2016)”, “previouslyFormattedCitation” : “(Mui ; Mustapha, 2016)” }, “properties” : { }, “schema” : “https://github.com/citation-style-language/schema/raw/master/csl-citation.json” }(Mui & Mustapha, 2016). In other words, there is no dividend policy can be familiarly accepted and hence, managers in the company will find it difficult in deciding the distribution of cash dividend to the shareholders.
Thus, this study aims to examine which determinants could influence dividend policy decision among public listed companies in Malaysia. This study tends to fill in the gap through extending the study done by the previous empirical research on determinants of dividend policy in Malaysia context by using the recent years’ data. The study also tend to add additional factors of Corporate Tax in determining dividend policy, in which no previous research has been undertaken in Malaysia context.

1.4 Research ObjectivesThe research objectives in this study was based on the problem above along together with the additional factors of Corporate Tax in determining dividend policy.

1.4.1 General ObjectiveTo examine factors that influence the Dividend Policy decision among Malaysia public listed companies.

1.4.2 Specific ObjectivesTo examine whether leverage has significant relationship with dividend policy.

To examine whether liquidity has significant relationship with dividend policy.

To examine whether profitability has significant relationship with dividend policy.

To examine whether investment opportunities has significant relationship with dividend policy.

To examine whether corporate tax has significant relationship with dividend policy.

1.5 Research QuestionsThe following research questions were addressed to gain and seek understanding the factors that influence Dividend Policy of Malaysia public listed companies.

Does leverage has significant relationship with dividend policy?
Does liquidity has significant relationship with dividend policy?
Does profitability has significant relationship with dividend policy?
Does investment opportunities has significant relationship with dividend policy?
Does corporate tax has significant relationship with dividend policy?
1.6 Scope of study1.7 Significance contribution of study1.8 Limitation of study
Chapter 2 Literature Review2.1 Dividend Theory2.1.1 Agency TheoryAgency theory views the relationship was occur in link of contract the manager as an agent and owner as a principal. The relationship exist when the shareholder, who is the owner of wealth in the company engaged the agent to manage and control the wealth on their behalf. The principal-agent relationship has created a problem that the agent are not share the same interest as principal, hence conflict of interest problem arise. The principal and manager’s interest may be diverged, since agent seem the acceptance of the agent status give them opportunity in maximize their own interest and utility. The principal need to incur cost in monitoring the behaviour of the agent, so that the agent will act in the best interest of the principal. This cost incurred by the principal refer as agency cost. Due separation of ownership and control between principal and agent rise the agency cost bear by the principal, therefore, dividend policy is one of the alternative that was believed in reducing agency cost ADDIN CSL_CITATION { “citationItems” : { “id” : “ITEM-1”, “itemData” : { “ISSN” : “2090-4274”, “abstract” : “Dividend policy is a decision made by an organization to determine the amount of dividend to be paid and the level of the profit to be retained. Prior studies claimed that dividend policy can help to reduce the agency problems in the organization. Thus, this decision is very important. However, todate, there is no general consensus on the factors which influence dividend policy. Therefore, this study aims to examine the determinants of dividend policy among public-listed firms in Malaysia. Secondary data was hand-collected from the annual reports of the listed firms for a period of five years. This study employs multiple regression to estimate the relationship between the determinants and dividend payout decisions. The results indicate that investment opportunity, liquidity and firm size significantly influence the dividend payout of Malaysian listed firms. This study contributes to the literature related to dividend payout in developing countries, specifically in the Malaysian business environment. It also provides information to the managers about how their decisions would affect the agency costs of the organization”, “author” : { “dropping-particle” : “”, “family” : “Mui”, “given” : “Yong Teck”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Mustapha”, “given” : “Mazlina”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” } , “container-title” : “Journal of Applied Environmental and Biological Sciences”, “id” : “ITEM-1”, “issue” : “March”, “issued” : { “date-parts” : “2016” }, “page” : “48-54”, “title” : “Determinants of Dividend Payout Ratio: Evidence from Malaysian Public Listed Firms”, “type” : “article-journal”, “volume” : “6” }, “uris” : “http://www.mendeley.com/documents/?uuid=d0aa192d-7ee8-4bfc-ab6b-fb6a912f6259” } , “mendeley” : { “formattedCitation” : “(Mui ; Mustapha, 2016)”, “plainTextFormattedCitation” : “(Mui ; Mustapha, 2016)”, “previouslyFormattedCitation” : “(Mui ; Mustapha, 2016)” }, “properties” : { }, “schema” : “https://github.com/citation-style-language/schema/raw/master/csl-citation.json” }(Mui & Mustapha, 2016).
2.1.2 Signalling Theory2.1.3 Bird in Hand Theory2.1.4 Pecking Order Theory2.2 Review of LiteratureThe evolution of dividend policy has been started by Litner (1956), in which introduce with the Litner Model.

2.2.1 Leverage and Dividend PolicyPrevious empirical research have studied in their research that annual company’s level of leverage as an important determinants of the dividend policy decision. It was also believed that leverage level and dividend policy can be as substitute in reducing agency problem ADDIN CSL_CITATION { “citationItems” : { “id” : “ITEM-1”, “itemData” : { “ISSN” : “2090-4274”, “abstract” : “Dividend policy is a decision made by an organization to determine the amount of dividend to be paid and the level of the profit to be retained. Prior studies claimed that dividend policy can help to reduce the agency problems in the organization. Thus, this decision is very important. However, todate, there is no general consensus on the factors which influence dividend policy. Therefore, this study aims to examine the determinants of dividend policy among public-listed firms in Malaysia. Secondary data was hand-collected from the annual reports of the listed firms for a period of five years. This study employs multiple regression to estimate the relationship between the determinants and dividend payout decisions. The results indicate that investment opportunity, liquidity and firm size significantly influence the dividend payout of Malaysian listed firms. This study contributes to the literature related to dividend payout in developing countries, specifically in the Malaysian business environment. It also provides information to the managers about how their decisions would affect the agency costs of the organization”, “author” : { “dropping-particle” : “”, “family” : “Mui”, “given” : “Yong Teck”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Mustapha”, “given” : “Mazlina”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” } , “container-title” : “Journal of Applied Environmental and Biological Sciences”, “id” : “ITEM-1”, “issue” : “March”, “issued” : { “date-parts” : “2016” }, “page” : “48-54”, “title” : “Determinants of Dividend Payout Ratio: Evidence from Malaysian Public Listed Firms”, “type” : “article-journal”, “volume” : “6” }, “uris” : “http://www.mendeley.com/documents/?uuid=d0aa192d-7ee8-4bfc-ab6b-fb6a912f6259” } , “mendeley” : { “formattedCitation” : “(Mui ; Mustapha, 2016)”, “plainTextFormattedCitation” : “(Mui ; Mustapha, 2016)”, “previouslyFormattedCitation” : “(Mui ; Mustapha, 2016)” }, “properties” : { }, “schema” : “https://github.com/citation-style-language/schema/raw/master/csl-citation.json” }(Mui & Mustapha, 2016). The leverage shown how much the liability level of the company, and associate with the availability of cash in deciding company’s reliance on the external funds in financing future profitable investment ADDIN CSL_CITATION { “citationItems” : { “id” : “ITEM-1”, “itemData” : { “author” : { “dropping-particle” : “”, “family” : “Thi”, “given” : “Nguyen”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Trang”, “given” : “Xuan”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” } , “container-title” : “International Journal of Business, Economics and Law”, “id” : “ITEM-1”, “issued” : { “date-parts” : “2012” }, “page” : “48-57”, “title” : “DETERMINANTS OF DIVIDEND POLICY : THE CASE OF VIETNAM”, “type” : “article-journal”, “volume” : “1” }, “uris” : “http://www.mendeley.com/documents/?uuid=ee3f595a-4f97-4757-98e1-2029b9060040” } , “mendeley” : { “formattedCitation” : “(Thi ; Trang, 2012)”, “plainTextFormattedCitation” : “(Thi ; Trang, 2012)”, “previouslyFormattedCitation” : “(Thi ; Trang, 2012)” }, “properties” : { }, “schema” : “https://github.com/citation-style-language/schema/raw/master/csl-citation.json” }(Thi & Trang, 2012) and ADDIN CSL_CITATION { “citationItems” : { “id” : “ITEM-1”, “itemData” : { “ISSN” : “2090-4274”, “abstract” : “Dividend policy is a decision made by an organization to determine the amount of dividend to be paid and the level of the profit to be retained. Prior studies claimed that dividend policy can help to reduce the agency problems in the organization. Thus, this decision is very important. However, todate, there is no general consensus on the factors which influence dividend policy. Therefore, this study aims to examine the determinants of dividend policy among public-listed firms in Malaysia. Secondary data was hand-collected from the annual reports of the listed firms for a period of five years. This study employs multiple regression to estimate the relationship between the determinants and dividend payout decisions. The results indicate that investment opportunity, liquidity and firm size significantly influence the dividend payout of Malaysian listed firms. This study contributes to the literature related to dividend payout in developing countries, specifically in the Malaysian business environment. It also provides information to the managers about how their decisions would affect the agency costs of the organization”, “author” : { “dropping-particle” : “”, “family” : “Mui”, “given” : “Yong Teck”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Mustapha”, “given” : “Mazlina”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” } , “container-title” : “Journal of Applied Environmental and Biological Sciences”, “id” : “ITEM-1”, “issue” : “March”, “issued” : { “date-parts” : “2016” }, “page” : “48-54”, “title” : “Determinants of Dividend Payout Ratio: Evidence from Malaysian Public Listed Firms”, “type” : “article-journal”, “volume” : “6” }, “uris” : “http://www.mendeley.com/documents/?uuid=d0aa192d-7ee8-4bfc-ab6b-fb6a912f6259” } , “mendeley” : { “formattedCitation” : “(Mui ; Mustapha, 2016)”, “plainTextFormattedCitation” : “(Mui ; Mustapha, 2016)”, “previouslyFormattedCitation” : “(Mui ; Mustapha, 2016)” }, “properties” : { }, “schema” : “https://github.com/citation-style-language/schema/raw/master/csl-citation.json” }(Mui & Mustapha, 2016).
Several authors around the world have examined the relationship between leverage and dividend policy, and it shown a mixed result. ADDIN CSL_CITATION { “citationItems” : { “id” : “ITEM-1”, “itemData” : { “DOI” : “10.1108/10264116200700007”, “ISBN” : “1026411620070”, “ISSN” : “1026-4116”, “PMID” : “42012058”, “abstract” : “This paper examines the determinants of corporate dividend policy in Jordan. The study uses a firm-level panel data set of all publicly traded firms on the Amman Stock Exchange between 1989 and 2000. The study develops eight research hypotheses, which are used to represent the main theories of corporate dividends. A general-to-specific modeling approach is used to choose between the competing hypotheses. The study examines the determinants of the amount of dividends using Tobit specifications. The results suggest that the proportion of stocks held by insiders and state ownership significantly affect the amount of dividends paid. Size, age, and profitability of the firm seem to be determinant factors of corporate dividend policy in Jordan. The findings provide strong support for the agency costs hypothesis and are broadly consistent with the pecking order hypothesis. The results provide no support for the signaling hypothesis”, “author” : { “dropping-particle” : “”, “family” : “Nizar Alu2010Malkawi”, “given” : “Husamu2010Aldin”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” } , “container-title” : “Journal of Economic and Administrative Sciences”, “id” : “ITEM-1”, “issue” : “2”, “issued” : { “date-parts” : “2007” }, “page” : “44-70”, “title” : “Determinants of Corporate Dividend Policy in Jordan: An Application of the Tobit Model”, “type” : “article-journal”, “volume” : “23” }, “uris” : “http://www.mendeley.com/documents/?uuid=74f01388-752d-43bc-ad2e-cb459489fdd3” } , “mendeley” : { “formattedCitation” : “(Nizar Alu2010Malkawi, 2007)”, “manualFormatting” : “Nizar Alu2010Malkawi (2007)”, “plainTextFormattedCitation” : “(Nizar Alu2010Malkawi, 2007)”, “previouslyFormattedCitation” : “(Nizar Alu2010Malkawi, 2007)” }, “properties” : { }, “schema” : “https://github.com/citation-style-language/schema/raw/master/csl-citation.json” }Nizar Al?Malkawi (2007) who examined the determinants of dividend policy in Jordan, using the data from Amman Stock Exchange, supported the significant negative relationship between leverage and dividend policy. By using debt to equity ratio and dividend yield as a measurement for leverage and dividend policy, respectively, the author concluded while companies have report on high debt equity ratio, they tend to pay lower dividend payment. Similarly, the result of significant negative relationship between leverage and dividend policy also found by ADDIN CSL_CITATION { “citationItems” : { “id” : “ITEM-1”, “itemData” : { “abstract” : “The paper investigates the impact of different firm specific factors on the dividend policy of companies by selecting a sample of 18 banks listed in KSE for the period 2006-2011. The dependent variable is dividend policy where as explanatory variables include, firm size and risk, profitability, firmu2019s growth and leverage. It was found that out of 18 banks 11 banks pay dividends whereas seven banks do not. The results have shown that the independent variables growth, profitability and firm size have positive coefficient of correlation when the dependent variable is dividend yield and Dividend Payout Ratio. However there is strong linear association between profitability and firm size with dividend policy but the variable growth rate has weak positive correlation with dividend policy. In contrast, the variables leverage and firm risk has inverse linear relationship with dividend policy. Banks that pay dividends were found, when we use method of correlation coefficient more profitable, stable and less risky as compare to banks that do not pay dividends.”, “author” : { “dropping-particle” : “”, “family” : “Gul”, “given” : “Sajid”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Mughal”, “given” : “Sumra”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Bukhari”, “given” : “Syeda Asma”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Shabir”, “given” : “Nabia”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” } , “container-title” : “European Journal of Business and Management”, “id” : “ITEM-1”, “issue” : “12”, “issued” : { “date-parts” : “2012” }, “page” : “1-5”, “title” : “The Determinants of Corporate Dividend Policy: An Investigation of Pakistani Banking Industry”, “type” : “article-journal”, “volume” : “4” }, “uris” : “http://www.mendeley.com/documents/?uuid=bc749acb-1916-4165-82be-d9dfac8f0211” } , “mendeley” : { “formattedCitation” : “(Gul, Mughal, Bukhari, ; Shabir, 2012)”, “manualFormatting” : “Gul, Mughal, Bukhari, ; Shabir (2012)”, “plainTextFormattedCitation” : “(Gul, Mughal, Bukhari, ; Shabir, 2012)”, “previouslyFormattedCitation” : “(Gul, Mughal, Bukhari, ; Shabir, 2012)” }, “properties” : { }, “schema” : “https://github.com/citation-style-language/schema/raw/master/csl-citation.json” }Gul, Mughal, Bukhari, & Shabir (2012)ADDIN CSL_CITATION { “citationItems” : { “id” : “ITEM-1”, “itemData” : { “author” : { “dropping-particle” : “”, “family” : “Thi”, “given” : “Nguyen”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Trang”, “given” : “Xuan”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” } , “container-title” : “International Journal of Business, Economics and Law”, “id” : “ITEM-1”, “issued” : { “date-parts” : “2012” }, “page” : “48-57”, “title” : “DETERMINANTS OF DIVIDEND POLICY : THE CASE OF VIETNAM”, “type” : “article-journal”, “volume” : “1” }, “uris” : “http://www.mendeley.com/documents/?uuid=ee3f595a-4f97-4757-98e1-2029b9060040” } , “mendeley” : { “formattedCitation” : “(Thi ; Trang, 2012)”, “manualFormatting” : ” and Thi ; Trang (2012)”, “plainTextFormattedCitation” : “(Thi ; Trang, 2012)”, “previouslyFormattedCitation” : “(Thi ; Trang, 2012)” }, “properties” : { }, “schema” : “https://github.com/citation-style-language/schema/raw/master/csl-citation.json” } and Thi & Trang (2012), which covered in emerging countries context of Pakistan and Vietnam respectively.
In contrast, there are also researcher that found leverage significant impact and associated with dividend policy. ADDIN CSL_CITATION { “citationItems” : { “id” : “ITEM-1”, “itemData” : { “author” : { “dropping-particle” : “”, “family” : “Pandey”, “given” : “N S”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Ashvini”, “given” : “N”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” } , “container-title” : “Pacific Business Review International”, “id” : “ITEM-1”, “issue” : “1”, “issued” : { “date-parts” : “2016” }, “page” : “135-141”, “title” : “A Study on Determinants of Dividend Policy : Empirical Evidence from FMCG Sector in India”, “type” : “article-journal”, “volume” : “1” }, “uris” : “http://www.mendeley.com/documents/?uuid=74932c86-c998-4b97-84e3-b3ddfee0c876” } , “mendeley” : { “formattedCitation” : “(Pandey ; Ashvini, 2016)”, “manualFormatting” : “Pandey ; Ashvini (2016)”, “plainTextFormattedCitation” : “(Pandey ; Ashvini, 2016)”, “previouslyFormattedCitation” : “(Pandey ; Ashvini, 2016)” }, “properties” : { }, “schema” : “https://github.com/citation-style-language/schema/raw/master/csl-citation.json” }Pandey & Ashvini (2016) has conducted a study in examining the determinants of dividend policy in India in which covered for FMCG sectors for the range of 10 years. ADDIN CSL_CITATION { “citationItems” : { “id” : “ITEM-1”, “itemData” : { “author” : { “dropping-particle” : “Al”, “family” : “Taleb”, “given” : “Ghassan”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” } , “container-title” : “Interdisciplinary Journal of Contemporary Research in Business”, “id” : “ITEM-1”, “issue” : “10”, “issued” : { “date-parts” : “2012” }, “page” : “234-244”, “title” : “Measurement of Impact Agency Costs Level of Firms on Dividend and Leverage Policy : An Empirical Study”, “type” : “article-journal”, “volume” : “3” }, “uris” : “http://www.mendeley.com/documents/?uuid=e4b954fd-9a17-4d33-a800-f9a294dd6e02” } , “mendeley” : { “formattedCitation” : “(Taleb, 2012)”, “manualFormatting” : “Taleb (2012)”, “plainTextFormattedCitation” : “(Taleb, 2012)”, “previouslyFormattedCitation” : “(Taleb, 2012)” }, “properties” : { }, “schema” : “https://github.com/citation-style-language/schema/raw/master/csl-citation.json” }Taleb (2012), who applied free cash flow theory, covered for industrial sector in the study revealed the same result as ADDIN CSL_CITATION { “citationItems” : { “id” : “ITEM-1”, “itemData” : { “author” : { “dropping-particle” : “”, “family” : “Pandey”, “given” : “N S”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Ashvini”, “given” : “N”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” } , “container-title” : “Pacific Business Review International”, “id” : “ITEM-1”, “issue” : “1”, “issued” : { “date-parts” : “2016” }, “page” : “135-141”, “title” : “A Study on Determinants of Dividend Policy : Empirical Evidence from FMCG Sector in India”, “type” : “article-journal”, “volume” : “1” }, “uris” : “http://www.mendeley.com/documents/?uuid=74932c86-c998-4b97-84e3-b3ddfee0c876” } , “mendeley” : { “formattedCitation” : “(Pandey ; Ashvini, 2016)”, “manualFormatting” : “Pandey ; Ashvini, (2016)”, “plainTextFormattedCitation” : “(Pandey ; Ashvini, 2016)”, “previouslyFormattedCitation” : “(Pandey ; Ashvini, 2016)” }, “properties” : { }, “schema” : “https://github.com/citation-style-language/schema/raw/master/csl-citation.json” }Pandey & Ashvini, (2016).
In developed countries, ADDIN CSL_CITATION { “citationItems” : { “id” : “ITEM-1”, “itemData” : { “abstract” : “Dividend decision is one of the most important decisions and well researched areas of Financial Management but still very little research has been conducted in the GCC, particularly in the UAE. This paper adds to the existing body of knowledge by empirically chalking out the important factors which affect the dividend payout decisions of UAE firms. This paper investigates the determinants of dividend payout for all firms in the areas of real estate, energy sector, construction sector, telecommunications sector, health care and industrial sectors (except bank and investment concerns) listed on the Abu Dhabi Stock exchange for a period of 5 years from 2005-2009. This study analyses a range of determinants of dividend policy: Profitability, Risk,, Liquidity, Size and Leverage of the firm The correlation and the multiple regression techniques have been applied to find out the most significant variables used by the UAE firms in making the dividend decisions. The study provides evidence that profitability and size are the most important considerations of dividend payout decisions by UAE firms.”, “author” : { “dropping-particle” : “”, “family” : “Mehta”, “given” : “Anupam”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” } , “container-title” : “Global Review of Accounting and Finance”, “id” : “ITEM-1”, “issue” : “1”, “issued” : { “date-parts” : “2012” }, “page” : “18-31”, “title” : “An Empirical Analysis of Determinants of Dividend Policy – Evidence from the UAE Companies”, “type” : “article-journal”, “volume” : “3” }, “uris” : “http://www.mendeley.com/documents/?uuid=4704b106-a599-4705-998d-70ac2c030165” } , “mendeley” : { “formattedCitation” : “(Mehta, 2012)”, “manualFormatting” : “Mehta (2012)”, “plainTextFormattedCitation” : “(Mehta, 2012)”, “previouslyFormattedCitation” : “(Mehta, 2012)” }, “properties” : { }, “schema” : “https://github.com/citation-style-language/schema/raw/master/csl-citation.json” }Mehta (2012) was examined the relationship between leverage and dividend policy among UAE companies. By taking a various industries into the studies, including real estate, energy, construction, telecommunication, health care as well as industrial industries, for a period of 2005-2009, the author showed that leverage has insignificant positive relationship with dividend policy. The insignificant correlation explained by ADDIN CSL_CITATION { “citationItems” : { “id” : “ITEM-1”, “itemData” : { “abstract” : “Dividend decision is one of the most important decisions and well researched areas of Financial Management but still very little research has been conducted in the GCC, particularly in the UAE. This paper adds to the existing body of knowledge by empirically chalking out the important factors which affect the dividend payout decisions of UAE firms. This paper investigates the determinants of dividend payout for all firms in the areas of real estate, energy sector, construction sector, telecommunications sector, health care and industrial sectors (except bank and investment concerns) listed on the Abu Dhabi Stock exchange for a period of 5 years from 2005-2009. This study analyses a range of determinants of dividend policy: Profitability, Risk,, Liquidity, Size and Leverage of the firm The correlation and the multiple regression techniques have been applied to find out the most significant variables used by the UAE firms in making the dividend decisions. The study provides evidence that profitability and size are the most important considerations of dividend payout decisions by UAE firms.”, “author” : { “dropping-particle” : “”, “family” : “Mehta”, “given” : “Anupam”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” } , “container-title” : “Global Review of Accounting and Finance”, “id” : “ITEM-1”, “issue” : “1”, “issued” : { “date-parts” : “2012” }, “page” : “18-31”, “title” : “An Empirical Analysis of Determinants of Dividend Policy – Evidence from the UAE Companies”, “type” : “article-journal”, “volume” : “3” }, “uris” : “http://www.mendeley.com/documents/?uuid=4704b106-a599-4705-998d-70ac2c030165” } , “mendeley” : { “formattedCitation” : “(Mehta, 2012)”, “manualFormatting” : “Mehta (2012)”, “plainTextFormattedCitation” : “(Mehta, 2012)”, “previouslyFormattedCitation” : “(Mehta, 2012)” }, “properties” : { }, “schema” : “https://github.com/citation-style-language/schema/raw/master/csl-citation.json” }Mehta (2012) proof that leverage of the company is not one of the factors that need to considered while making a decision for dividend policy. ADDIN CSL_CITATION { “citationItems” : { “id” : “ITEM-1”, “itemData” : { “DOI” : “10.1080/09603107.2011.639734”, “ISBN” : “07328516”, “ISSN” : “0960-3107”, “PMID” : “9409142070”, “author” : { “dropping-particle” : “”, “family” : “Lestari”, “given” : “Henny Setyo”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” } , “container-title” : “IOP Conference Series: Earth and Environmental Science”, “id” : “ITEM-1”, “issue” : “012046”, “issued” : { “date-parts” : “2018” }, “page” : “1-7”, “title” : “Determinants of corporate dividend policy in Indonesia”, “type” : “article-journal”, “volume” : “106” }, “uris” : “http://www.mendeley.com/documents/?uuid=a25141b2-0330-417c-a23f-63c7257c9488” } , “mendeley” : { “formattedCitation” : “(Lestari, 2018)”, “manualFormatting” : “Lestari (2018)”, “plainTextFormattedCitation” : “(Lestari, 2018)”, “previouslyFormattedCitation” : “(Lestari, 2018)” }, “properties” : { }, “schema” : “https://github.com/citation-style-language/schema/raw/master/csl-citation.json” }Lestari (2018) in study using Indonesia company’s data also found that debt has no significant effect on dividend policy. The author explained that for the companies deciding the level of distribution of dividend, the companies may considered others firm characteristic factors, but not debt level.

In Malaysia context, there is contradict result in examining the whether leverage has significant relationship effect on dividend policy. ADDIN CSL_CITATION { “citationItems” : { “id” : “ITEM-1”, “itemData” : { “DOI” : “10.1108/RIBS-02-2014-0030”, “ISBN” : “RIBS-02-2014-0030.pdf”, “ISSN” : “2059-6014”, “PMID” : “42012058”, “abstract” : “Purpose u2013 This study aims to investigate the determinants of the dividend policy of public listed companies in Malaysia. The factors examined in this study include earnings, cash flows, free cash flows, debt level, growth, investment, size, largest shareholders, risk and lagged dividend. Design/methodology/approach u2013 Data were obtained from the relevant databases and annual reports of the sampled companies. The study examines a total of 147 listed companies. In analyzing the data, the study used fixed and random effects, pooled least squares model, robust standard errors on fixed effects and random-effects models. Findings u2013 The results revealed the five factors that are earnings, debt, size, investment and largest shareholder have a significant influence on dividend policy, with earnings, firm size and investment revealed to have a positive significant effect, while debt and large shareholders have a negative significant effect. Practical implications u2013 The findings from this study are useful to the boar…”, “author” : { “dropping-particle” : “”, “family” : “Yusof”, “given” : “Yusniliyana”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Ismail”, “given” : “Suhaiza”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” } , “container-title” : “Review of International Business and Strategy”, “id” : “ITEM-1”, “issue” : “1”, “issued” : { “date-parts” : “2016” }, “page” : “88-99”, “title” : “Determinants of dividend policy of public listed companies in Malaysia”, “type” : “article-journal”, “volume” : “26” }, “uris” : “http://www.mendeley.com/documents/?uuid=1003f5d1-25d9-4589-be6f-d1d9e6c44ded” } , “mendeley” : { “formattedCitation” : “(Yusof ; Ismail, 2016)”, “manualFormatting” : “Yusof ; Ismail (2016)”, “plainTextFormattedCitation” : “(Yusof ; Ismail, 2016)”, “previouslyFormattedCitation” : “(Yusof ; Ismail, 2016)” }, “properties” : { }, “schema” : “https://github.com/citation-style-language/schema/raw/master/csl-citation.json” }Yusof & Ismail (2016), in explaining the leverage effect on dividend policy, the authors found that high level of debt were associated with the lower dividend payout. On the other hand, ADDIN CSL_CITATION { “citationItems” : { “id” : “ITEM-1”, “itemData” : { “ISSN” : “2090-4274”, “abstract” : “Dividend policy is a decision made by an organization to determine the amount of dividend to be paid and the level of the profit to be retained. Prior studies claimed that dividend policy can help to reduce the agency problems in the organization. Thus, this decision is very important. However, todate, there is no general consensus on the factors which influence dividend policy. Therefore, this study aims to examine the determinants of dividend policy among public-listed firms in Malaysia. Secondary data was hand-collected from the annual reports of the listed firms for a period of five years. This study employs multiple regression to estimate the relationship between the determinants and dividend payout decisions. The results indicate that investment opportunity, liquidity and firm size significantly influence the dividend payout of Malaysian listed firms. This study contributes to the literature related to dividend payout in developing countries, specifically in the Malaysian business environment. It also provides information to the managers about how their decisions would affect the agency costs of the organization”, “author” : { “dropping-particle” : “”, “family” : “Mui”, “given” : “Yong Teck”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Mustapha”, “given” : “Mazlina”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” } , “container-title” : “Journal of Applied Environmental and Biological Sciences”, “id” : “ITEM-1”, “issue” : “March”, “issued” : { “date-parts” : “2016” }, “page” : “48-54”, “title” : “Determinants of Dividend Payout Ratio: Evidence from Malaysian Public Listed Firms”, “type” : “article-journal”, “volume” : “6” }, “uris” : “http://www.mendeley.com/documents/?uuid=d0aa192d-7ee8-4bfc-ab6b-fb6a912f6259” } , “mendeley” : { “formattedCitation” : “(Mui ; Mustapha, 2016)”, “manualFormatting” : “Mui ; Mustapha (2016)”, “plainTextFormattedCitation” : “(Mui ; Mustapha, 2016)”, “previouslyFormattedCitation” : “(Mui ; Mustapha, 2016)” }, “properties” : { }, “schema” : “https://github.com/citation-style-language/schema/raw/master/csl-citation.json” }Mui & Mustapha (2016) by collecting data of 100 public listed companies in Bursa Malaysia from 2007-2011, they revealed that leverage have insignificant positive coefficient relationship with dividend policy. It shown that leverage have no effect on the dividend policy decision among public listed companies in Malaysia. Therefore, this study tend to examining effect of leverage on dividend policy by using current data.

2.2.2 Dividend Policy & Liquidity2.2.3 Dividend Policy & Profitability2.2.5 Dividend Policy & Corporate Taxation2.3 Hypotheses Development2.3.1 Leverage and Dividend PolicyADDIN CSL_CITATION { “citationItems” : { “id” : “ITEM-1”, “itemData” : { “DOI” : “10.1111/j.1475-6803.1982.tb00299.x”, “ISBN” : “02702592”, “ISSN” : “14756803”, “PMID” : “5376757”, “abstract” : “A model of optimal dividend payout is presented in which increased dividends lower agency costs but raise the transactions cost of external financing. The optimal dividend payout minimizes the sum of these two costs. A cross-sectional test of the model relates dividend payout to the fraction of equity held by insiders, the past and expected future revenue growth of the firm, the firm’s beta coefficient, and the number of common stockholders. The coefficients of all variables are significant in the predicted directions. The results indicate that investment policy influences dividend policy. ABSTRACT FROM AUTHOR”, “author” : { “dropping-particle” : “”, “family” : “Rozeff”, “given” : “Michael S.”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” } , “container-title” : “Journal of Financial Research”, “id” : “ITEM-1”, “issue” : “3”, “issued” : { “date-parts” : “1982” }, “page” : “249-259”, “title” : “Growth, Beta and Agency Costs As Determinants of Dividend Payout Ratios”, “type” : “article”, “volume” : “5” }, “uris” : “http://www.mendeley.com/documents/?uuid=19afcb83-d69d-4ff1-8d7a-28b2c7170161” } , “mendeley” : { “formattedCitation” : “(Rozeff, 1982)”, “manualFormatting” : “Rozeff (1982)”, “plainTextFormattedCitation” : “(Rozeff, 1982)”, “previouslyFormattedCitation” : “(Rozeff, 1982)” }, “properties” : { }, “schema” : “https://github.com/citation-style-language/schema/raw/master/csl-citation.json” }Rozeff (1982) expressed that companies that have high financial leverage will tend to decide of low dividend pay out in which to eliminate transaction cost of external debt financing. The relationship of the leverage and dividend is consistent with the pecking order theory and free cash flow theory. The high debt level give a whole picture that the companies are bearing with fixed debt repayment and high interest charges, consequently the companies facing high risk of not having sufficient cash and cash equivalents for settlement of the payment. Therefore, the higher leverage ratio, the lower chances of the company in making dividend payment to shareholders, since the company will face financial constrained, subsequently less probability in distribution of dividends. Therefore, this study was expected that leverage has negative relationship effect and influence on dividend policy, as supported by previous researcher of ADDIN CSL_CITATION { “citationItems” : { “id” : “ITEM-1”, “itemData” : { “DOI” : “10.1108/10264116200700007”, “ISBN” : “1026411620070”, “ISSN” : “1026-4116”, “PMID” : “42012058”, “abstract” : “This paper examines the determinants of corporate dividend policy in Jordan. The study uses a firm-level panel data set of all publicly traded firms on the Amman Stock Exchange between 1989 and 2000. The study develops eight research hypotheses, which are used to represent the main theories of corporate dividends. A general-to-specific modeling approach is used to choose between the competing hypotheses. The study examines the determinants of the amount of dividends using Tobit specifications. The results suggest that the proportion of stocks held by insiders and state ownership significantly affect the amount of dividends paid. Size, age, and profitability of the firm seem to be determinant factors of corporate dividend policy in Jordan. The findings provide strong support for the agency costs hypothesis and are broadly consistent with the pecking order hypothesis. The results provide no support for the signaling hypothesis”, “author” : { “dropping-particle” : “”, “family” : “Nizar Alu2010Malkawi”, “given” : “Husamu2010Aldin”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” } , “container-title” : “Journal of Economic and Administrative Sciences”, “id” : “ITEM-1”, “issue” : “2”, “issued” : { “date-parts” : “2007” }, “page” : “44-70”, “title” : “Determinants of Corporate Dividend Policy in Jordan: An Application of the Tobit Model”, “type” : “article-journal”, “volume” : “23” }, “uris” : “http://www.mendeley.com/documents/?uuid=74f01388-752d-43bc-ad2e-cb459489fdd3” } , “mendeley” : { “formattedCitation” : “(Nizar Alu2010Malkawi, 2007)”, “manualFormatting” : “Nizar Alu2010Malkawi (2007)”, “plainTextFormattedCitation” : “(Nizar Alu2010Malkawi, 2007)”, “previouslyFormattedCitation” : “(Nizar Alu2010Malkawi, 2007)” }, “properties” : { }, “schema” : “https://github.com/citation-style-language/schema/raw/master/csl-citation.json” }Nizar Al?Malkawi (2007), Thi & Trang (2012) and ADDIN CSL_CITATION { “citationItems” : { “id” : “ITEM-1”, “itemData” : { “abstract” : “The paper investigates the impact of different firm specific factors on the dividend policy of companies by selecting a sample of 18 banks listed in KSE for the period 2006-2011. The dependent variable is dividend policy where as explanatory variables include, firm size and risk, profitability, firmu2019s growth and leverage. It was found that out of 18 banks 11 banks pay dividends whereas seven banks do not. The results have shown that the independent variables growth, profitability and firm size have positive coefficient of correlation when the dependent variable is dividend yield and Dividend Payout Ratio. However there is strong linear association between profitability and firm size with dividend policy but the variable growth rate has weak positive correlation with dividend policy. In contrast, the variables leverage and firm risk has inverse linear relationship with dividend policy. Banks that pay dividends were found, when we use method of correlation coefficient more profitable, stable and less risky as compare to banks that do not pay dividends.”, “author” : { “dropping-particle” : “”, “family” : “Gul”, “given” : “Sajid”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Mughal”, “given” : “Sumra”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Bukhari”, “given” : “Syeda Asma”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” }, { “dropping-particle” : “”, “family” : “Shabir”, “given” : “Nabia”, “non-dropping-particle” : “”, “parse-names” : false, “suffix” : “” } , “container-title” : “European Journal of Business and Management”, “id” : “ITEM-1”, “issue” : “12”, “issued” : { “date-parts” : “2012” }, “page” : “1-5”, “title” : “The Determinants of Corporate Dividend Policy: An Investigation of Pakistani Banking Industry”, “type” : “article-journal”, “volume” : “4” }, “uris” : “http://www.mendeley.com/documents/?uuid=bc749acb-1916-4165-82be-d9dfac8f0211” } , “mendeley” : { “formattedCitation” : “(Gul et al., 2012)”, “manualFormatting” : “Gul, Mughal, Bukhari, & Shabir (2012)”, “plainTextFormattedCitation” : “(Gul et al., 2012)”, “previouslyFormattedCitation” : “(Gul et al., 2012)” }, “properties” : { }, “schema” : “https://github.com/citation-style-language/schema/raw/master/csl-citation.json” }Gul, Mughal, Bukhari, & Shabir (2012). This fact lead to the hypothesis of:
H1: There is negative relationship between leverage and dividend policy.

2.4 Research Framework
Chapter 3: Research Design Methodology3.1 Sample Selection3.1.1 Population3.1.2 Sampling Technique3.1.3 Sample3.2 Data Collection Method3.3 Description of Variables3.3.1 Independent Variable: Leverage3.3.2 Independent Variable: Liquidity3.3.3 Independent Variable: Profitability3.3.5 Independent Variable: Corporate Taxation3.3.6 Dependent Variable: Dividend Policy3.3.7 Control Variable: Firm Size3.4 Data Analysis3.4.1 Descriptive Analysis3.4.2 Normality Test3.4.3 Correlation Analysis3.4.4 Multicollinearity3.4.5 Multiple Regression
ReferencesADDIN Mendeley Bibliography CSL_BIBLIOGRAPHY Gul, S., Mughal, S., Bukhari, S. A., & Shabir, N. (2012). The Determinants of Corporate Dividend Policy: An Investigation of Pakistani Banking Industry. European Journal of Business and Management, 4(12), 1–5.

Lestari, H. S. (2018). Determinants of corporate dividend policy in Indonesia. IOP Conference Series: Earth and Environmental Science, 106(12046), 1–7. https://doi.org/10.1080/09603107.2011.639734
Mehta, A. (2012). An Empirical Analysis of Determinants of Dividend Policy – Evidence from the UAE Companies. Global Review of Accounting and Finance, 3(1), 18–31.

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