Corporate Governance and Corporate Social Responsibility Performance: The Moderating Roles of Dividend Payout in Sharia Compliance Companies in Malaysia.

Abstract

This paper investigates the moderating roles of dividends in sustaining the Corporate Governance and Corporate Social Responsibility performance of Malaysian Companies using 209 annual reports of Sharia index companies of Bursa Malaysia in 2012 by employed Hierarchical Regression Analysis. Corporate Governance and Corporate Social Responsibility indices were developed and adopted with several modifications from Minority Shareholders Watch Group (MSWG) which is based on the Malaysian Code of Corporate Governance (MCCG) 2012. It was found that the Dividend (DPAY) significantly moderates the relationships between the Corporate Governance Index (CGI) and performance (Tobin’s Q) but did not moderate the relationships between Corporate Social Responsibilities (CSRI) and performance (Tobin’s Q). This study clarified that Dividend pay- out reflects negatively on the relationship between CG good practice and performance which indicated that Dividend Payout is not a motivational tool that can influence the company's performance directly when the company sustained good corporate governance in a positive way.