UNIMAS Review of Accounting and Finance

DIVIDEND POLICY EFFECTS ON FIRMS’ VALUE IN MALAYSIAN PLANTATION SECTOR

Nazaria Md Aris, Yuin Weng Tan , Brenda Nu Minggu , Pei Jia Lim — Sun, 24 Dec 2023 00:00:00 +0000

Dividend policy relay information regarding the dividend decision made by the firm, and it is crucial to the shareholders and investors due to the potential impact on the value of a firm. This study aims to investigate the influence of dividend policy and firms’ value for the plantation sector in Malaysia. Thus, the determinants for dividend policy are dividend payout ratio, price earnings ratio, and earnings per share while the firms’ value is represented by Tobin’s Q. Based on a quantitative approach, 44 firms of plantation sectors listed in Bursa Malaysia from 2016 to 2019. The data were collected from the published annual reports and audited financial statements of the local plantation firms and analyzed using EViews version 10. Based on the findings, the dividend payout ratio has a negative significant relationship with firms’ value. The price earnings ratio has a negative influence on firms’ value while earnings per share have a positive influence on firms’ value. However, these relationships were reported as insignificant. This study attempts to contribute to the body of knowledge and highlights the valuable implication to the management, stakeholders, and policy makers of the plantation sector in Malaysia.

CASH CONVERSION CYCLE EFFECTS ON PROFITABILITY OF MALAYSIAN PLANTATION SECTOR

Sun, 24 Dec 2023 00:00:00 +0000

The cash conversion cycle (CCC) is a crucial indicator in determining how efficiently a firm can turn its inventory into sales and subsequently into cash. Data from 43 firms listed in Bursa Malaysia from 2016 to 2019 were used to study the relationship between the CCC and profitability. The determinants for CCC are the days sales outstanding (DSO), days payables outstanding (DPO), and days inventory outstanding (DIO) while profitability is represented by the return on assets (ROA) of the firms. The data were collected from the published annual reports and audited financial statements of the local plantation firms and analyzed using EViews version 10. The result reported that DSO positively influences profitability significantly. DIO also reported a positive influence on profitability but the relationship is insignificant. On the other hand, DPO has an adverse effect on profitability and the relationship is insignificant. The findings provide useful information for the Malaysian government, investors, and policymakers in developing effective policies, rules, or regulations to promote economic productivity, growth, and the best plantation financing decision.

THE IMPACTS OF FINANCIAL RATIOS ON STOCK PRICES IN MALAYSIA: EVIDENCE FROM BANKING INDUSTRY

Sun, 24 Dec 2023 00:00:00 +0000

The objective of this study is to identify whether the financial ratios have an impact towards the stock price in the banking industry of Malaysia. The financial ratios used in this study are the net profit margin, price to earnings ratio and dividend payout ratio. The sample collected for this empirical study covered 10 years of data from 2013-2022. The study found that the net profit margin and price to earnings ratio boost stock price, however the dividend payout ratio decreases stock price. The influence of net profit margin and dividend payment ratio on stock price is negligible, in contrast to price to earnings ratio, which has a large effect on stock price.

CEO GENDER AND FIRM PERFORMANCE IN MALAYSIA

Sun, 24 Dec 2023 00:00:00 +0000

This study aims to examine the link between CEO gender and company performance in Malaysia Using 30 companies for the period from 2018 to 2022 and a panel data analysis, the findings show that gender, firm age, and the number of directors have no effect on a company's performance. Contrarily, firm size significantly enhances the performance of the firm. The study has major implications to investors, businesses, and policy makers.

THE IMPACT OF TRADE, FOREIGN DIRECT INVESTMENT (FDI), AND ECONOMIC GROWTH ON CARBON DIOXIDE (CO2) EMISSIONS IN SELECTED ASIAN COUNTRIES

Yu Tian Li — Mon, 25 Dec 2023 04:00:04 +0000

This study examines the impact of trade, foreign direct investment (FDI), and economic growth on carbon dioxide (CO2) emissions in Selected Asian countries for the period 1990 to 2019. The objectives of this study are (1) to investigate the relationship between trade and CO2 emission, (2) to investigate the relationship between FDI and CO2 emission, and (3) to investigate the relationship between economic growth and CO2 emission.

This study uses ordinary least squares (OLS) method to analyze the data. Multicollinearity test, heteroskedasticity test, and serial correlation test were also used to check the stability of the model. In addition, Granger causality test was applied to this study.

The results show that there is a significant positive correlation between economic growth and CO2 emissions. If GDP increases by 1%, the average CO2 emission will increase by 0.186%, holding other variables constant. The explanation of trade and FDI on CO2 emissions is insignificant. Multicollinearity, heteroskedasticity and serial correlation are not present in the model of this study. Finally, the results of Granger causality test show that there is no Granger causality between independent variables and dependent variable.

The government establishes better environmental regulations and strengthens the regulation of chemical and heavy industry sectors. Promoting technological advancement and investment in new energy technologies, government focus on energy efficiency and environmental initiatives in the corporate sector can effectively curb the growth of CO2 emissions.

CAPITAL STRUCTURE AND PERFORMANCE OF MANUFACTURING COMPANIES ON BURSA MALAYSIA

Lee Fah Chen , Asri Marsidi — Mon, 25 Dec 2023 05:00:13 +0000

The study is carried out to examine the impact of capital structure on the performance of Malaysian manufacturing listed corporations. Specifically, the study attempts to investigate the relationship between short-term debt (STD), long-term debt (LTD), total assets (TA) and debt to equity (DE) on the return on equity (ROE) of manufacturing companies listed on Bursa Malaysia. To achieve this objective, the data is collected from the annual data of 30 Malaysian manufacturing companies listed on Bursa Malaysia from 2010 to 2017. The annual reports of the selected companies are available on the Bursa Malaysia webpage. In this study, the data is analyzed using Eviews 9 software. The findings of the study show that total assets (TA) and debt to equity (DE) have negative significant effect on the return on equity (ROE) whereas short-term debt (STD) and long-term debt (LTD) have positive significant relationship with firm financial performance. The study thus contributes towards better understanding on the relationship between the capital structure and performance of the manufacturing companies in Malaysia.

CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE AND COST OF EQUITY EVIDENCE FROM PUBLIC LISTED COMPANIES IN MALAYSIA

Tue, 26 Dec 2023 01:25:01 +0000

Corporate social responsibility (CSR) has been rolled out in recent years as it has become vital owing to the massive growth of financial institutions, mutual funds, online resources, and other publications. CSR disclosure could reduce the cost of equity. The study's main objective is to investigate the CSR disclosure by companies listed in Malaysia towards the cost of equity. This study is based on three hundred four (304) samples of Malaysian listed companies from 2013 to 2014. The data of the samples were mainly collected from annual reports, except for financial data which were collected from DataStream. The result revealed that the CSR disclosure in the annual report could reduce the company's cost of equity by reducing information asymmetry, reducing agency costs, and reducing companies' risk. The result also shows that liquidity has a significant negative relationship with the cost of equity. The higher information disclosure enhances stock market liquidity, thus, reducing the cost of equity through the reduction of risk as well increasing demand for a company's securities. The size, liquidity, and growth have a significant relationship with the cost of equity.

IMPACT OF COMPANY DIVIDEND POLICY ON STOCK PRICE VOLATILITY IN FOOD AND BEVERAGE INDUSTRY IN MALAYSIA

Norlina Kadri, Raul Stephen Hardin — Tue, 26 Dec 2023 10:39:08 +0000

Investor expectations are greatly shaped by a company's dividend policy, which also has an impact on stock price volatility. This study attempts to investigate how corporate dividend policies affect stock price volatility in Malaysia's food and beverage sector. This research aims to provide light on the dynamics of dividend decisions and their impacts on market behavior by examining the relationship between dividend policy and stock price volatility. Utilizing secondary data gathered from publically accessible sources, including financial statements and stock market data, the study uses a quantitative research design. For the analysis, a sample of 30 food and beverage companies that are listed on the Bursa Malaysia stock exchange is chosen and 16 years period (2005-2020) been analyzed. To allow for a comparison examination, the sample contains both dividend-paying and non-dividend-paying enterprises. Regression analysis and descriptive analysis are two statistical methods that are used to analyze the link between dividend policy and stock price volatility. To verify the validity of the results, additional variables such as firm financial performance, market conditions, and industryspecific characteristics are taken into account.The results of this study will add to the body of knowledge by presenting empirical data on the effect of corporate dividend policies on stock price volatility in Malaysia's food and beverage sector. The findings will improve knowledge of the relevance of dividend policy choices and their possible impacts on stock market dynamics among investors, policymakers, and market players.

AN INTERACTION BETWEEN BOARD ATTRIBUTES AND EARNINGS MANAGEMENT OF LISTED MANUFACTURING COMPANIES IN NIGERIA

Thu, 28 Dec 2023 04:28:31 +0000

The study investigated an interplay between board attribute and earnings management of listed manufacturing companies in Nigeria. This study tested some board attributes indicators (audit fee, board independence, and board size), and earnings management was proxied using discretionary accruals using a sample of forty-two (42) manufacturing companies listed on Nigerian Exchange Group while purposeful sampling techniques were used to sampled from the population, covering the study period from 2010 to 2021. The data were analyzed using the Generalized method of moment by the use of E-View 12 econometric software and multivariate- regression model. The findings of the study show that there is a positive and statistically insignificant relationship between audit fees and earnings management. The study therefore concludes that a positive and statistical relationship exists between board attributes and earnings management of listed manufacturing companies in Nigeria. The study consequently recommends that ethical standards should be encouraged by the regulatory agencies if not mandated.