Ameer, Rashid (2007): Product Market Competition, Regulation and Dividend Payout Policy of Malaysian Banks. Forthcoming in: Journal of Financial Regulation and Disclosure , Vol. 16, No. 3
Download (196Kb) | Preview
This paper investigates the impact of the product market competition, regulations on the dividend policies of We find significant differences in the payout of the banks categorized as selling a non-interest based banking products and mix of both interest and non-interest based banking products. We find that the decision to increase dividends is significantly related to earnings, and the decision to cut dividend is significantly related to the changes in the non-performing loans, corporate and real estate sectors loans ratio and earnings loses. Research findings have implication for the regulators of the banks. The research provides a clear link between banks' portfolio choice and earnings that have implications for the dividends in the emerging markets.
|Item Type:||MPRA Paper|
|Original Title:||Product Market Competition, Regulation and Dividend Payout Policy of Malaysian Banks|
|Keywords:||Dividends, Banks, Non-performing loans, Ordered Probit Model, Malaysia|
|Subjects:||D - Microeconomics > D2 - Production and Organizations > D21 - Firm Behavior: Theory|
|Depositing User:||Rashid Ameer|
|Date Deposited:||05. May 2008 12:48|
|Last Modified:||03. Apr 2013 13:28|
Adaoglu, C, (2000), “Instability in the Dividend Policy of the Istanbul Stock Exchange (ISE) Corporations: Evidence from an Emerging Market”, Emerging Market Review, Vol. 1, pp. 252-270.
Amihud, Y. and Murgia, M., (1997), “Dividend, Taxes, and Signalling: Evidence from Germany”, The Journal of Finance Vol. 52, pp.397-408.
Aivazian, V., Booth, L., and Cleary, S., (2003), “Dividend policy and The Organization of Capital Markets”, Journal of Multinational Financial Management, Vol. 13, pp. 101-121.
Aivazian, V., Booth, L., and Cleary, S., (2003), “Do Emerging Firms Follow Different Dividend Policies from US Firms?”, Journal of Financial Research, Vol. 26, No.3, pp. 371-387.
Allen, F. Bernardo, A. and Welch, I., (2000), “A Theory of Dividends based on Tax Clienteles”, The Journal of Finance, Vol. 56, No.6, pp. 2449-2536.
Allen, D.E .A and Veronica, S.R., (1996), “Dividend Policy and Stock Price Volatility: Australian Evidence”, Applied Financial Economics, Vol. 6, pp. 175-188.
Baker, M and Wurgler, J., (2004), “A Catering Theory of Dividends”, The Journal of Finance Vol. 59, pp. 1125-1165.
Baker, H.K. Powell, G.E. and Veit, T.T., (2002), “Revisiting Managerial Perspectives on Dividend Policy”, Journal of Economics and Finance, Vol. 26, pp.267–283
Barclays, M.J. Smith, C.W. and Watts, R.L., (1995), “The Determinants of Corporate Leverage and Dividend Policies”, Journal of Applied Corporate Finance, Vol. 7, pp. 4-19.
Bessler, W. and Nohel, T, (1996), “The Stock Market Reaction to Dividends cuts and omissions by Commercial Banks”, Journal of Banking and Finance, Vol.20, No.9, pp. 1485-1508.
Bessler, W. and Nohel, T, (2000), “Asymmetric information, dividend reductions, and contagion effects in bank stock returns”, Journal of Banking and Finance, Vol. 24, pp. 1831-1848.
Black, F. and Scholes, M., (1972,) “The Effects of Dividend Yield and Dividend Policy on Common Stock Prices and Returns”, Journal of Financial Economics, Vol. 1, pp. 1-22.
Bhattacharya, S., (1979), “Imperfect Information, Dividend policy and the ‘Bird in the hand fallacy”, Bell Journal of Economic, Vol. 10, pp. 259-270.
Bhattacharya, N., (2007), “Dividend Policy: A Review”, Managerial Finance, Vol. 33, No. 1, pp. 4-13.
Casey, K, M. and Dickens, R.N., (2000), “The Effect of Tax and Regulatory Changes on Commercial Bank Dividend Policy”, Quarterly Review of Economics and Finance, pp. 279-293.
Chami, R., Cosimano, T., (2001), “The Conduct of Monetary Policy under the Basel Accord, Manuscript”, International Monetary Fund and University of Notre Dame, January.
Dickens, R.N. Casey, K.M. and Joseph, M, (2003), “Bank Dividend Policy: Explanatory Factors”, Quarterly Journal of Business and Economics, Vol. 41, No. 1/2,
Goergen, M. Reneeboog, L. and Silva, L.C., (2003), “When Do German Firms Change their Dividends?” Journal of Corporate Finance, Vol. 11, No. 2, pp. 375-399.
Gugler, K., (2003), “Corporate Governance, Dividend Payout Policy, and The Interrelation between Dividends, R&D, and the Capital Investment” Journal of Banking and Finance, Vol. 27, pp. 1297-1321.
Horace, H., (2003), “Dividend Policies in Australia and Japan”, International Advances in Economic Research, Vol. 9, No. 2, pp.91-100.
Hosono, K. ,(2005), “The Transmission Mechanism of Monetary Policy in Japan: Evidence from Banks’ balance sheets”, The Japanese and International Economies, Vol. 20, pp. 380-405.
Hülsewig, O. Mayer, E. and Wollmershäuser, T., (2005), “Bank Loan Supply and Monetary Policy Transmission in Germany: An Assessment based on Matching Impulse Responses”, Journal of Banking and Finance, Vol. 30 No.10, pp. 2839-2910.
Jensen, M., Meckling, W., (1976), “Theory of the firm, managerial behaviour, agency costs, and ownership structure”, Journal of Financial Economics 3, 305-360.
Jensen, M.J. (1986). Agency cost of free cash flow, corporate finance, and takeover, American Economic Review, 76, 323-329.
Kashyap, A. and Stein, J., (1995), “The Impact of Monetary Policy on Bank Balance Sheets Carnegie Rochester Series on Public Policy”, Vol. 42, pp. 151-195.
Katib, M.N. and Mathews, K., (2000), “A non-parametric approach to efficiency measurement in the Malaysian banking sector”. The Singapore Economic Review, Vol. 44, pp. 89-114.
Kim, M. Kristiansen, E.G. and Vale, B., (2005), “Endogenous Product Differentiation in Credit Markets: What do borrowers pay for?” Journal of Banking and Finance Vol. 29, No. 3, pp. 681-699.
Kopecky, K. and VanHoose, D., (2004), “A Model of the Monetary Sector with and without Binding Capital Requirements”, Journal of Banking and Finance Vol. 28, pp.633–646.
Kopecky, K. and VanHoose, D., (2004), “Bank Capital Requirements and the Monetary Transmission Mechanism”, Journal of Macroeconomics, Vol. 26, No.3, pp. 443-464.
Krishnasamy, G., Ridzwa, A.F., Vignesan, P., (2004), “Malaysian Post-Merger Banks’ Productivity: Application of Malmquist Productivity Index”, Managerial Finance, Vol. 30, pp. 63-74.
La Porta, R, L. Lopez, S. F., Shleifer, A. and Vishny, R.W., (2000), “Agency Problems and Dividend Policies around the World”, The Journal of Finance, Vol.55, No.1, pp.1-33.
Laeven, L., (2003), “Does Financial Liberalization Reduce Financing Constraints?” Financial Management, Vol. 32, No.1, 5-34.
Lintner, J., (1956), “Distribution of Incomes of Corporations Among Dividends, Retained Earnings, and Taxes”, American Economic Review, Vo.46, pp. 97–113.
Marquez, R., (2002), “Competition, Adverse Selection, and Information Dispersion in the Banking Industry”, The Review of Financial Studies, Vol.15, No.3, pp. 901-926.
Mateut, S. Roughens, S. and Mizen, P., (2006), “Trade credit, Bank lending, and Monetary Policy Transmission”, European Economic Review, Vol. 50, pp. 603-629.
Mayne, L.S., (1980), “Bank Dividend Policy and Holding Company Affiliation”, Journal of Financial and Quantitative Analysis, Vol.15, No.2, pp. 469-480.
Mercado-Mendez, J. and Willey, T, (1995), “Agency costs in the Banking Industry: An Examination of Ownership Behaviour, Leverage and Dividend policy”, Journal of Economics and Finance, Vol.19, No.3, pp. 105-117.
Miller M., and Modigliani, F., (1961), “Dividend Policy, Growth and the Valuation of Shares”, Journal of Business, Vol. 34, pp/ 411–433
Miller, M., and Rock, K., (1985), “Dividend policy under asymmetric information”, The Journal of Finance”, Vol. 40, pp.1031-1051.
Nelson, R.R., (1991), “Why Do Firms Differ, and How Does it Matter?” Strategic Management Journal, Vol. 12, No.8, pp. 61-74.
Ogler, Y.E., and Taggart, R.A., (1983), “Implications of Corporate Capital Structure Theory of Banking Institutions”, Journal of Money, Credit and Banking, Vol.15, No.2, pp. 212-221.
Pandey, I.M., (2003), “Corporate Dividend Policy and Behaviour: the Malaysian Evidence”, Asian Academy of Management Journal, Vol. 8, No.1, pp. 17-32.
Sufian, F., (2004), “The Efficiency Effects of Bank Mergers and Acquisitions in a Developing Economy: Evidence from Malaysia”, International Journal of Applied Econometrics and Quantitative Studies, Vol. 1, No.4, pp. 53-74.