The Impact of Dividend Policy on Shareholders' Wealth in Malaysia

Purpose: To determine the significant relationship and the effect of dividend policy on shareholders' wealth in Malaysia. Design/methodology/approach: Observation of top 200 companies listed in Bursa Malaysia for 5 years (2011 to 2015). Researchers used correlation and regression analysis to analyze the data. Findings: Found that Return on Equity (ROE) and Dividend per Share (DPS) have positive relationship while Dividend Payout Ratio (DPR) shown negative relationship with shareholders' wealth. For regression, all the independent variables indicated significant result towards the dependent variable. Research limitations/implications: Unavailability and restricted of data. Practical implications: Financial specialists, top managements and future researchers may benefited from this research, whereby used the information resulted in order to provide a clearer picture regards the dividend policy and improve the decision making process. Originality/value: Give readers a comprehensive view and understanding of the variation in dividend policy. The paper is the extension of previous research in capturing the factors of dividends affecting the shareholders' wealth in Malaysia.