Corporate Governance and Dividend Policy in Jordan

Abstract

The purpose of this study is to identify the determinants of dividend policy in the Malaysian Financial Institutions by looking at both conventional and Islamic banking sectors. Panel data set was constructed from financial institutions in Malaysia. The results show statistically significant positive relationship between dividend payout and revenue growth for conventional Malaysian Financial Institutions, i.e. conventional banks distribute higher dividends when they record higher profitability. On the other hand, only lagged dividend shows positive significant relationship with dividend payout for Islamic financial institutions in Malaysia. The results suggests that Islamic banks in Malaysia only look to the past dividend payment to determine their future dividend payments.