scholarly journals Dividend Payout Policy and Global Financial Crisis: A Study on Malaysian Non-Financial Listed Companies

2021 ◽  
Vol 14 (1) ◽  
pp. 145-170
Author(s):  
Tze-Haw Chan ◽  
Hooi-Laing Boo ◽  
Ruhani Ali
Keyword(s):  
Financial Crisis ◽  
Dividend Policy ◽  
Global Financial Crisis ◽  
Policy Implications ◽  
Future Research ◽  
Dividend Payout ◽  
Dividend Policies ◽  
Financial Index ◽  
The Global Financial Crisis ◽  
The Impact

Manuscript type: Research paper Research aims: This paper examines the impact of the global financial crisis on Malaysia non-financial index firms’ dividend policies. Design/Methodology/Approach: This paper used panel data of 495 firm-year observations of Malaysian non-financial index firms from 2006 to 2016. Research findings: Our findings indicate that firms adjust their dividend policies during the pre-crisis and post-crisis periods; more profitable and larger firms are more likely to distribute their dividend payouts, whereas firms with higher leverage are more likely to omit their dividends. Moreover, dividend policies that will increase firms’ valuation are adopted in Malaysia. This is reflected in the signalling theory with evidence that higher profitability exerts a positive influence on firms’ propensity to increase and/or maintain dividends over different study periods, implying that markets attach a high valuation to firms that can pay, especially during the crisis period. We also find the role of catering theory and smoothing hypothesis lost relevance in both crisis and non-crisis periods. Thus, the catering theory and smoothing hypothesis were not supported in Malaysia. Theoretical contribution/Originality: This study investigates the impact of the global financial crisis on Malaysia non-financial index firms’ dividend policies. This paper suggestion can act as a catalyst to more comprehensive and detailed researches and studies on dividend policy in any economic landscapes. Practitioner/Policy implications: This paper may also guide companies on the structure and use of dividend distribution over the precrisis, during the crisis, and post-crisis periods. Research limitation/Implications: One limitation of the study is that the measures used for dividend payout determinants are only based on the theory investigated. These measures may not completely reflect all the payout determinants. Future research could address this limitation by employing other factors in the study of dividend policy such as inflation, economic growth, and corporate governance.

scholarly journals Income Distribution in Turkey during the Global Financial Crisis

2017 ◽  
Vol 9 (3) ◽  
pp. 91
Author(s):  
Sinem Sefil-Tansever
Keyword(s):  
Financial Crisis ◽  
Income Inequality ◽  
Global Financial Crisis ◽  
Income Source ◽  
Labor Earnings ◽  
Income Sources ◽  
Gini Decomposition ◽  
The Global Financial Crisis ◽  
The Impact ◽  
Earning Inequality

The aim of this study is to examine mechanism responsible for the behavior of the income and earning inequality in Turkey during the global financial crisis based on data from the 2006 to 2014 Income and Living Conditions Survey. Gini decomposition by income source is employed in order to provide an analysis of the contribution of the various income sources to the evolution of income inequality and to assess the impact of a marginal percentage change in the income from a particular source on income inequality. For examining the contributions of specific variables (education, position in occupation, economic sector) to the interpretation of labor earnings inequality in terms of their gross and marginal contribution, we use static decomposition of Theil T index.

scholarly journals Russia and the CIS in 2008: Axis of Authoritarianism??

Asian Survey ◽  
2009 ◽  
Vol 49 (1) ◽  
pp. 135-145 ◽  
Author(s):  
Charles E. Ziegler
Keyword(s):  
Financial Crisis ◽  
Economic Performance ◽  
Domestic Politics ◽  
Global Financial Crisis ◽  
Great Power ◽  
The Caucasus ◽  
Central Asian ◽  
Presidential Succession ◽  
The Global Financial Crisis ◽  
The Impact

Russia's seamless presidential succession produced no major changes in domestic politics or foreign policy. Ties with Asia remained strong, though several key relationships——with China, Japan, and the Central Asian states——frayed under the impact of Russia's military action in Georgia. Impressive economic performance in the first half of the year boosted Russian confidence as a great power, but its vulnerability to the global financial crisis together with the heavy-handed operation in the Caucasus undermined Moscow's standing with both Asia and Europe by the end of the year.

scholarly journals Global Financial Crisis and Philanthropy: Malaysian Case

2015 ◽  
Vol 7 (2) ◽  
pp. 19-31 ◽  
Author(s):  
Janice Lay Hui Nga
Keyword(s):  
Financial Crisis ◽  
Mixed Method ◽  
Qualitative Data ◽  
Global Financial Crisis ◽  
Secondary Data ◽  
Civil Society Organisations ◽  
The Global Financial Crisis ◽  
The Impact ◽  
To Receive ◽  
Method Approach

This paper investigates the issue of the global financial crisis and its impacts on philanthropy and civil society organisations (CSOs) in Malaysia. CSOs are popularly known as non-governmental organisations (NGOs) in Malaysia. Financial crisis has caused NGOs in many countries to receive less funding. This situation may threaten and discourage voluntary works. Undoubtedly, these beneficial contributions from the NGOs are needful services to the society. This paper examines the impact of financial crisis through the lens of NGOs and philanthropy activities in Malaysia. It utilises primary and secondary data, employs a mixed method approach, and uses quantitative and qualitative data. While there are many influencing factors in this development, this paper presents several significant aspects in the Malaysian context, including the style and nature of giving, culture, religion, and political pressure. This study attempts to seek potential solutions, pathways and possible approaches beneficial to NGOs and philanthropy activities for their sustainability in facing the financial crisis and its consequences. Experiences and lessons learnt in Malaysia may well be useful and applicable to some extent in other countries.

The challenges of inclusive growth for the developmental welfare state

2017 ◽  
Author(s):  
Huck-ju Kwon
Keyword(s):  
Social Policy ◽  
Financial Crisis ◽  
Economic Model ◽  
Global Financial Crisis ◽  
Policy Implications ◽  
What Works ◽  
Nation States ◽  
The Social ◽  
The One ◽  
The Global Financial Crisis

One of the biggest challenges for developing a new more productivist social policy approach has been the apparent absence of a new, post-neoliberal, economic model even after the global financial crisis. This chapter explores the social policy implications of the official ‘pragmatism’ of the new economic model with its ‘institutionalist’ emphases on nation states finding what works best in their own contexts rather than looking to the one size fits all approach of recent decades.

scholarly journals Islamic Banking: The Firewall Against The Global Financial Crisis

2011 ◽  
Vol 28 (1) ◽  
pp. 9 ◽  
Author(s):  
Rohana Othman ◽  
Nooraslinda Abdul Aris ◽  
Rafidah Mohd Azli ◽  
Roshayani Arshad
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Free Market ◽  
Financial System ◽  
Capitalist System ◽  
Islamic Economic ◽  
The Global Financial Crisis ◽  
Financial Transactions ◽  
The Impact ◽  
Fundamental Values

The global financial crisis that devastated many of the worlds financial systems in a manner never seen before exposed the glaring weakness in risk management and interest-driven policies. The crisis brought the collapse of several iconic financial institutions once perceived to be too strong to capitulate. The crisis engulfed one economy after another from corporations to eventually bring about the collapse of governments of countries reeling from the impact of the crisis. Asset values plummeted and the crisis clearly demonstrated the fragility of the western capitalist system and the free market economy. The Islamic economic and financial system is anchored on universal honorable values, ideals and morals - honesty, credibility, transparency, co-operation and solidarity. These fundamental values uphold stability, security and safety in any financial transactions. Of paramount consideration is that the Shariah prohibits any economic and financial transactions that involve usury, lying, gambling, cheating, unsubstantiated risk or uncertainty (gharar), monopoly, exploitation, greed, unfairness and taking other peoples money unjustly. Another key aspect to the philosophy behind the Islamic financial system is money issued must be fully asset backed. It is impermissible to allow money to be traded for money except at par. Islam is not just the prohibition of riba and zakah (alms); it is a comprehensive system to fulfill societys basic necessities (food, clothing and shelter). History has demonstrated that Islam has the capacity to deliver and has succeeded in providing a viable economic system.

scholarly journals Lessons and Policy Implications From the Global Financial Crisis

2010 ◽  
Vol 10 (44) ◽  
pp. 1 ◽  
Author(s):  
Stijn Claessens ◽  
Luc Laeven ◽  
Deniz Igan ◽  
Giovanni Dell'Ariccia ◽  
◽  
...  
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Policy Implications ◽  
The Global Financial Crisis

scholarly journals The impact of operating leverage on the capital structure of Johannesburg Stock Exchange-listed firms before and after the 2008 global financial crisis

2018 ◽  
Vol 11 (1) ◽  
Author(s):  
Matabane T. Mohohlo ◽  
Johan H. Hall
Keyword(s):  
Financial Crisis ◽  
Capital Structure ◽  
South African ◽  
Global Financial Crisis ◽  
Stock Exchange ◽  
Johannesburg Stock Exchange ◽  
The Global Financial Crisis ◽  
Operating Leverage ◽  
The Impact ◽  
The Capital Structure

The financial leverage-operating leverage trade-off hypothesis states that as financial leverage increases, management of firms will seek to reduce the exposure to operating leverage in an attempt to balance the overall risk profile of a firm. It is the objective of this study to test this hypothesis and ascertain whether operating leverage can indeed be added to the list of factors that determine the capital structure of South African firms. Forty-six firms listed on the Johannesburg Stock Exchange between 1994 and 2015 are analysed and the impact of operating leverage is determined. The results are split into two periods, that is, the period before the global financial crisis (1994–2007) and after the global financial crisis (2008–2015). The impact of operating leverage during these two periods is then compared to determine whether a change in the impact of operating leverage on the capital structure can be observed especially following the crisis. The results show that the conservative nature of South African firms leading up to 2008 persisted even after the global financial crisis. At an industry level, the results reveal that operating leverage does not have a noticeable impact on capital structure with the exception of firms in the industrials sector of the South African economy.

scholarly journals Determinants of failure in Greek manufacturing SMEs

2017 ◽  
Vol 14 (3) ◽  
pp. 45-55 ◽  
Author(s):  
Efthalia Tabouratzi ◽  
Christos Lemonakis ◽  
Alexandros Garefalakis
Keyword(s):  
Financial Crisis ◽  
Financial Reporting ◽  
Fixed Effects ◽  
Global Financial Crisis ◽  
Manufacturing Sector ◽  
Bank Lending ◽  
Policy Implications ◽  
Z Score ◽  
The Government ◽  
The Global Financial Crisis

The globalization and the global financial crisis provide a new extremely competitive environment for small and medium sized enterprises (SMEs). During the latest years, the increased number of firms’ default has generated the need of understanding the factors of firms’ default, as SMEs in periods of financial crisis suffer from lack of financial resources and expensive bank lending. We use a sample of 3600 Greek manufacturing firms (9 Sectors), covering the time period of 2003-2011 (9 years). We run a panel regression model with correction for fixed effects in both the cross-section and period dimensions using as dependent variable the calculated Z-Score of each firm, and as independent variables several financial ratios, as well as the exporting activity and the use of International Financial Reporting Standards (IFRS Accounting Standards).We find that firms presenting higher performance in terms of ROA and sales and higher leverage levels that enhance their liquidity as well are healthier in terms of Z-score than their less profitable counterparts and acquire lower rates of probability of default: in other words, less risk. The results of the study can lead to policy implications for both Managers and the Government in order to enhance the growth of Greek manufacturing sector.

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