The Impact of Dividend Policy on Shareholders' Wealth Based on Agency Cost and Residual Dividend Theory

This study attempts to shed light on dividend policy for Malaysian companies by seeking to understand the explanations for corporate dividend policy's effect on shareholder's wealth (Market Price Share), for the year 2007 to 2009, with the focus on Agency Cost Theory and Residual Theory. T...

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Main Author:	Siad, Ahmed Abubakar Ahmed
Format:	Thesis
Language:	eng eng
Published:	2010
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/2481/1/Ahmed_Abubakar_Ahmed_Siad.pdf https://etd.uum.edu.my/2481/2/1.Ahmed_Abubakar_Ahmed_Siad.pdf
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spelling	my-uum-etd.24812013-07-24T12:16:13Z The Impact of Dividend Policy on Shareholders' Wealth Based on Agency Cost and Residual Dividend Theory 2010-10-17 Siad, Ahmed Abubakar Ahmed Ibrahim, Yusnidah College of Business (COB) College of Business HG Finance This study attempts to shed light on dividend policy for Malaysian companies by seeking to understand the explanations for corporate dividend policy's effect on shareholder's wealth (Market Price Share), for the year 2007 to 2009, with the focus on Agency Cost Theory and Residual Theory. Three variables associated with Residual Theory namely Size, Growth opportunity (GO) and Capital expenditure (CAPEX) and two variables associated with Agency Cost Theory, namely Leverage (LEV) and Free cashflow (FCF) are the focus of the study where their interaction effect with Dividend Per Share (DPS) are hypothesised to have significant effect on share price. Earnings per share (EPS), Exachange rate (EXR) and Inflation (INF) are used as control variables. Results show that the interaction variables between DPS and CAPEX, DPS and Growth Opportunity have significant influence on share price but in the direction opposite to that hypothesized under Residual Dividend Policy. Nevertheless, the interaction effect between DPS and Size is also significant in influencing share price in the manner predicted by Residual Dividend Policy. Variable associated with agency Cost Dividend Theory are shown not to play a significant mediating role in the relationship between stock price and DPS. 2010-10 Thesis https://etd.uum.edu.my/2481/ https://etd.uum.edu.my/2481/1/Ahmed_Abubakar_Ahmed_Siad.pdf application/pdf eng validuser https://etd.uum.edu.my/2481/2/1.Ahmed_Abubakar_Ahmed_Siad.pdf application/pdf eng public http://lintas.uum.edu.my:8080/elmu/index.jsp?module=webopac-l&action=fullDisplayRetriever.jsp&szMaterialNo=0000768362 masters masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Ibrahim, Yusnidah
topic	HG Finance
spellingShingle	HG Finance Siad, Ahmed Abubakar Ahmed The Impact of Dividend Policy on Shareholders' Wealth Based on Agency Cost and Residual Dividend Theory
description	This study attempts to shed light on dividend policy for Malaysian companies by seeking to understand the explanations for corporate dividend policy's effect on shareholder's wealth (Market Price Share), for the year 2007 to 2009, with the focus on Agency Cost Theory and Residual Theory. Three variables associated with Residual Theory namely Size, Growth opportunity (GO) and Capital expenditure (CAPEX) and two variables associated with Agency Cost Theory, namely Leverage (LEV) and Free cashflow (FCF) are the focus of the study where their interaction effect with Dividend Per Share (DPS) are hypothesised to have significant effect on share price. Earnings per share (EPS), Exachange rate (EXR) and Inflation (INF) are used as control variables. Results show that the interaction variables between DPS and CAPEX, DPS and Growth Opportunity have significant influence on share price but in the direction opposite to that hypothesized under Residual Dividend Policy. Nevertheless, the interaction effect between DPS and Size is also significant in influencing share price in the manner predicted by Residual Dividend Policy. Variable associated with agency Cost Dividend Theory are shown not to play a significant mediating role in the relationship between stock price and DPS.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Siad, Ahmed Abubakar Ahmed
author_facet	Siad, Ahmed Abubakar Ahmed
author_sort	Siad, Ahmed Abubakar Ahmed
title	The Impact of Dividend Policy on Shareholders' Wealth Based on Agency Cost and Residual Dividend Theory
title_short	The Impact of Dividend Policy on Shareholders' Wealth Based on Agency Cost and Residual Dividend Theory
title_full	The Impact of Dividend Policy on Shareholders' Wealth Based on Agency Cost and Residual Dividend Theory
title_fullStr	The Impact of Dividend Policy on Shareholders' Wealth Based on Agency Cost and Residual Dividend Theory
title_full_unstemmed	The Impact of Dividend Policy on Shareholders' Wealth Based on Agency Cost and Residual Dividend Theory
title_sort	impact of dividend policy on shareholders' wealth based on agency cost and residual dividend theory
granting_institution	Universiti Utara Malaysia
granting_department	College of Business (COB)
publishDate	2010
url	https://etd.uum.edu.my/2481/1/Ahmed_Abubakar_Ahmed_Siad.pdf https://etd.uum.edu.my/2481/2/1.Ahmed_Abubakar_Ahmed_Siad.pdf
_version_	1747827355659796480

The Impact of Dividend Policy on Shareholders' Wealth Based on Agency Cost and Residual Dividend Theory

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