This paper aimed to examine the effect of dividend on firm value, as well as the impact of audit quality on the relationship between dividend and firm value in Malaysian firms, which was measured via financial statements audited by four large-sized audit firms (henceforth the Big Four). The model projected was assessed by using Pooled Ordinary Least Square (OLS), panel random, and fixed effect regression. To ensure robust results, firm fixed effect were also employed. The results revealed that dividends negatively affected firm value, whereas audit quality moderated the relationship between the variables. The outcomes were robust even in further consideration of endogeneity concerns, specifically the omitted variable bias and reverse causality (i.e. firm fixed effect and Generalized Method of Moments (GMM)). The study findings provide novel information applicable for managers to devise investment strategies in the Malaysian market. The implication from this finding can be very useful for a manager to devise their strategy, especially by looking into the moderating effect of audit quality in mitigating information asymmetry that surrounds within dividend and firm value relationship. To the author’s knowledge, this paper contributes significantly towards dividend and firm value literature by being the pioneering introduction into the moderating effect of audit quality, especially in the context of emerging markets.

Using the threshold approach, this study provides new insights into the correlation between trade openness and carbon emissions in a sample of Asian countries. The sample includes 22 Asian countries covering the period from 2000 to 2019. The empirical results demonstrate the existence of a threshold effect in terms of trade openness and its relationship with carbon emissions. In particular, the study shows that trade openness has a positive effect on carbon emissions only until a certain threshold is reached; exceeding this threshold leads to a reduction in carbon emissions associated with greater trade openness. The resulting representation of an inverted U-shaped correlation between trade openness and carbon emissions stands up to scrutiny by panel quantile regression and the quadratic methodology (U-test) and confirms its robustness. These findings emphasise the importance of determining an "optimal" level of trade openness, which is essential to effectively govern the mitigation of carbon emissions, as well as to challenge the notion that trade openness inevitably leads to increased carbon emissions. The implications of the Environmental Kuznets Curve (EKC) theory, when accompanied by empirical evidence of knowledge spillovers resulting from trade openness, support innovation pathways that lead to the adoption of greener practices, promoting a cleaner and healthier societal environment. Graphical Abstract

Purpose: This paper aims to examine the moderating effects of board size on the relationship between dividends and firm value in Malaysian settings. The theoretical foundations of this research were the integration between agency and resources dependency theories. Design/methodology/approach: Panel data are extracted from DataStream and the annual report for the period of 2012 to 2021, and pooled OLS, random effects, and fixed effects analyses were employed to examine the relationship. Breusch–Pagan Lagrange multiplier (LM) test and the Hausman test used to determine the most appropriate between these three analyses (OLS, random effects, and fixed effects). The results are valid even after calculating the robust standard error to mitigate the potential heteroskedasticity and serial correlation. Findings: The empirical results show that board size positively moderates the relationship between dividends and firm value in all the models tested. The results indicate that a larger board of size can minimize the agency problem (agency theory) because a larger board size can more effectively monitor and control management's opportunistic behavior due to more set of skilled and talented individuals included in the boardroom (resources dependency theory). Additionally, effective monitoring can also lead to the increase in dividend payout to maintain a good reputation among investors and simultaneously increase firm value. Practical implication: This study contributes to helping the regulators and industry players in Malaysia to improve existing guidelines for determining dividend and board size to increase firm value. The findings may also provide inputs to the policymakers in recommending the optimum dividend and board size that resulting an increase in valuation. Originality/value: By incorporating agency and resources dependency theory, authors investigate the moderating effect of board size on dividend and firm value relationships in Malaysian markets.

This article aims to investigate the relationship between stock liquidity and dividend across emerging market countries as well as examined the moderating role of financial market development on the relationship between stock liquidity and dividend. Data were obtained from the World Bank and DataStream databases. The study examined 3,258 listed firms from 22 emerging markets to be extrapolated in the emerging market context. To analyse the data, this article used the panel data Tobit model and panel logistic regression, both with random effects. The analysis revealed that financial market development has a positive moderating effect on the relationship between stock liquidity and dividend by improving local market liquidity and mitigating information asymmetry. The study findings provide information for managers to devise investment strategy in the emerging markets. This article provides new insights into the financial market development moderating role on the relationship between stock liquidity and dividend.

Moderating Effects of Governance Quality on the Relationship between Stock Liquidity and Dividend in Emerging Market Countries

This study examines the relationship between dividend and firm value in Malaysian firms. The study uses pooled Ordinary Least Square, panel fixed, and random effect to examine the model. Using a sample from 659 firms across Malaysia from 2005 to 2019, the results reveal that dividend has a positive relationship with firm value proxy by Tobin’s Q. Moreover, the results are robust even after controlling for endogeneity concerns regarding omitted variables bias.