By
BalqisMohd Idris, Nadia Farah IzzatiNazri, Syukriah Ali, HasniAbd Rahim and KartiniKasim
Abstract
Maximizing
the shareholder’s wealth is an ultimate goal for every firm. It can be achieved
through the company’s action, usually through the periodic dividend payments
which is determined by dividend policy. The objective of this study is to
determine the impact of dividend policy on shareholders’ wealth based on ten
(10) Syariah compliance companies in consumer product sector listed at Bursa
Malaysia within the period of 2007 to 2017. The market price per share (MPS)
was used as the dependent variable. The dividend policy such as Earnings per Share
(EPS), Dividend per Share (DPS), Return on Equity (ROE), and Retained Earnings
(RE) were used as a proxy of dividend policy and represent as independent
variables.
This study used a multiple linear regression analysis
at a significance level of 5% processed by Eviews version 9.5 and 10. From the
results, it showed that all the variables proxies of the dividend policy has
positive effect on shareholders’ wealth (MPS).
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