Determinants of Dividend Payout in The Utilities Sector among Malaysian Public Listed Companies

Abstract

The issue of dividend payout in certain companies called the dividend puzzle raises a number of research issues that can be studied in detail at various levels. However, this study aims to determine the factors affecting determinants of dividend payout in the utilities sector such as debt, cash flows, investment, and growth. A total of 12 listed companies’ data over 3 years of 2017-2019 is used and analysed using a fixed-effect model. The findings underline the significant role of the independent variables in deciding the amount of dividend payout in the utilities sector. It demonstrated that only three variables are significant to the dividend payout; cash flow, investment, and growth. The results might provide a company’s board of directors and management team with appropriate dividend strategies that influence the shareholders’ investment decisions. This research provides empirical evidence on the study related to factors influencing dividend policy, which is currently considered inconclusive.