ScholarLens Back to search
2010•Unpublished venueRequires access

The Impact of Dividend Payout Ratio on Future Earnings Growth: Evidence from Malaysia

Zaharudin Khairul Zharif

Open publisher page 0 citations

Abstract

It is argued that the payout ratio has positive impact on future earnings growth as suggested by Arnott and Asness (2003) and Zhou and Ruland (2006). The aim of this study is to determine the impact of dividend payout ratio on future earnings growth in Malaysia. There was no study in Malaysia that emphasizes on the influence of dividend payout on future earnings growth. The study uses 97 listed companies on Bursa Malaysia as sample, with 485 company-year observations. The regression analysis shows that dividend payout ratio has no impact on future earnings growth. The nature of companies' ownership in Malaysia is the possible explanation for the results.

About this research paper

What this paper is about

It is argued that the payout ratio has positive impact on future earnings growth as suggested by Arnott and Asness (2003) and Zhou and Ruland (2006). The aim of this study is to determine the impact of dividend payout ratio on future earnings growth in Malaysia. There was no study in Malaysia that emphasizes on the influence of dividend payout on future earnings growth. The study uses 97 listed companies on Bursa Malaysia as sample, with 485 company-year observations. The regression analysis shows that dividend payout ratio has no impact on future earnings growth. The nature of companies' ownership in Malaysia is the possible explanation for the results.

Why it matters

A significance statement is not available in the OpenAlex record.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

It is argued that the payout ratio has positive impact on future earnings growth as suggested by Arnott and Asness (2003) and Zhou and Ruland (2006). The aim of this study is to determine the impact of dividend payout ratio on future earnings growth in Malaysia. There was no study in Malaysia that emphasizes on the influence of dividend payout on future earnings growth. The study uses 97 listed companies on Bursa Malaysia as sample, with 485 company-year observations. The regression analysis shows that dividend payout ratio has no impact on future earnings growth. The nature of companies' ownership in Malaysia is the possible explanation for the results.

Key concepts: Dividend payout ratio, Earnings, Earnings growth, Dividend, Business, Dividend yield, Monetary economics, Accounting

Related papers

Related paper 1Related paper 2Related paper 3
Back to paper searchBrowse research topicsOriginal source
The Impact of Dividend Payout Ratio on Future Earnings Growth: Evidence from Malaysia — Research Paper | ScholarLens