Impact of Inflation on Dividend Determinants and Dividend Payout
Abstract
The purpose of this study is to examine the moderating influence of inflation on the link between dividend determinants and dividend pay-outs in Malaysia. This study investigates dividend determinants taken from Lintner's model and inflation rate as a moderating variable. Data and information were collected from selected organizations using relevant and trustworthy databases and annual reports. A total of 260 listed firms out of a population of 790 listed companies in 2019 data were analysed using panel data analysis with fixed and random effects, pooled least squares model, and robust standard errors on fixed effects and random-effects models. The research comprised assessments of multicollinearity, heteroskedasticity, and regression models and was based on a categorization of 177 firms during a ten-year period. The study found a clear correlation between Firm revenue and dividend pay-outs, as well as between inflation and dividend pay-outs. The significance of this study lies in examining the moderating influence of inflation rate on the connection between dividend determinants and dividend pay-outs of publicly traded corporations in a developing market. Its practical application is valuable for board managers in understanding the factors that influence determining an acceptable dividend policy. This study presents a conceptual and empirical investigation of the moderating influence of inflation rate on the link between dividend determinants and dividend pay-outs of publicly listed corporations in the developing market of Malaysia. The novelty and usefulness of this study lies in its expansion of empirical data on dividend determinants.
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About this article
Publication Date
06 May 2024
Article Doi
eBook ISBN
978-1-80296-132-4
Publisher
European Publisher
Volume
133
Print ISBN (optional)
-
Edition Number
1st Edition
Pages
1-1110
Subjects
Marketing, retaining, entrepreneurship, management, digital marketing, social entrepreneurship
Cite this article as:
Osman, A., Pyeman, J., Jaafar, M. S., Sundram, V. P. K., & Zakaria, S. (2024). Impact of Inflation on Dividend Determinants and Dividend Payout. In A. K. Othman, M. K. B. A. Rahman, S. Noranee, N. A. R. Demong, & A. Mat (Eds.), Industry-Academia Linkages for Business Sustainability, vol 133. European Proceedings of Social and Behavioural Sciences (pp. 385-394). European Publisher. https://doi.org/10.15405/epsbs.2024.05.32