Determinants of dividend yield: A comparative analysis of long-run and short-run influences in ASEAN leading countries

Pavinee Manowan ,Wachira Boonyanet ,Kittisak Jangphanish

doi:10.24294/jipd10711

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Determinants of dividend yield: A comparative analysis of long-run and short-run influences in ASEAN leading countries

Pavinee Manowan

Wachira Boonyanet

Kittisak Jangphanish

Journal of Infrastructure Policy and Development 2025, 9(1), 10711; https://doi.org/10.24294/jipd10711

Submitted：03 Dec 2024

Accepted：21 Jan 2025

Published：22 Jan 2025

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Abstract

This paper investigates the elements affecting dividend yield in developing Southeast Asian countries—more specifically, Thailand, Malaysia, and Singapore. Examined here are the roles of financial information including debt to equity ratio, free cashflows, property, plant, and equipment (PPE) and total sales with controlling factors of size, institutional ownership, and firm age using both short-run and long-run analytical frameworks including the Error Correction Model and Engle and Granger’s approach. The results reveal different trends in the three nations. Higher debt and free cashflows lower dividend yield in Thailand; institutional shareholders benefit from maintaining greater dividend payouts. Aging companies in Malaysia are more likely to pay more dividends while rising revenues are linked to smaller short-term payouts. Leveraged and asset-heavy companies are more likely to keep paying dividends in Singapore. These discoveries have important ramifications for investors and business management trying to maximize dividend policies and improve shareholder value in developing economies.

Keywords

Ethical research

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