While 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 (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 as well as in adding additional factors of Corporate Tax in determining dividend policy.
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