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dividend

dividend

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Published by Hyat Yatt
dividend payment
dividend payment

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Categories:Types, Business/Law
Published by: Hyat Yatt on Aug 25, 2010
Copyright:Attribution Non-commercial

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08/25/2010

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DETERMINANTS OF DIVIDEND PAYMENTEMPIRICAL FINDING
CHAPTER 4EMPIRICAL FINDING
4.1INTRODUCTION
The data that have been collected in this study has been analyzedby using simple regression analysis through the SPSS program. SPSSprogram is used to derive the estimated regression as stated earlier.In this study, the mean of dividend payment which is measured asdividend payout ratio (DPR) of ten companies from consumer, industrialand properties sectors were regressed against independent variables of the study. The independent variables are capital structure (debt to equityratio), liquidity (quick ratio), and net profit of the companies. The value of each independent variable for the companies also computed as a mean.The mean value is used because of the result of the study will representsector for the purpose of comparison.
 
DETERMINANTS OF DIVIDEND PAYMENTEMPIRICAL FINDING
4.2
RESULTS FOR
CONSUMER SECTOR4.2.1ESTIMATED REGRESSION EQUATION
By using the SPSS program, the regression equation and theresult from the data are as follows;
 
Where;DIV = DIVIDEND PAYMENTCS = CAPITAL STRUCTURENP = NET PROFITLQ = LIQUIDITY
 
DIV = 4.157 + 1.243 CS + 1.16 LQ - 1.6340 NPSe = (0.223) (0.341) (0.058) (0.000)t-stat = (18.613) (3.644) (2.013) (-20.330)
 
DETERMINANTS OF DIVIDEND PAYMENTEMPIRICAL FINDING
 4.2.2 INTERPRETATION OF RESULT4.2.2.1Value of Coefficient
INDEPENDENTVARIABLESCOEFFICIENTINTERPRETATION
CS(Debt to equityratio)1.243If debt to equity ratio increases by1%, dividend payment will increaseby RM 1.243.LQ(Quick ratio) 1.16If quick ratio increases by 1%,dividend payment will increase byRM 1.16.NP- 1.6340If net profit increases by RM1,dividend payment will decrease byRM 1.634.

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