OWNERSHIP STRUCTURE, BOARD SIZE, BOARD COMPOSITION AND DIVIDEND POLICY: NEW EVIDENCE FROM TWO EMERGING MARKETS
Download| Volume 12 Issue 2 2016 | |
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| Author(s): |
Muhammad Sadiq Shahid, PhD
Dr. Faid Gul
Muhammad Rizwan
Muhammad Hassan Bucha, PhD
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| Abstract | Good corporate governance practices build equilibrium between management and shareholders and eliminate agency problems, as result managers pursue a suboptimal dividend policy. This study aims to examine the potential relationship between ownership structure, the board size, board composition, CEO duality, and dividend policy of 176 listed firms at KSE and 280 listed firms at BSI from 2010-2015. We used pooled OLS regression test to analyze the association between corporate governance determinants and dividend policy. Among other methods, VIF and Hausman tests had been used to check the fitting of Random effects and fixed effects, while the fixed-effect method was chosen to test the hypothesis. We discover a positive association between managerial ownership, the board size, board independence, and dividend policy, while a negative association between ownership concentration and dividend policy. Finally, it is observed that there is a positive impact of return on assets (ROA) and size on dividend policy. This study will contribute to the existing literature by investigating the impact of corporate governance on dividend policies of listed firms in emerging markets. |
| Keywords | Dividend policy, board size, Ownership structure and board independence |
| Year | 2016 |
| Volume | 12 |
| Issue | 2 |
| Type | Short Report |
| Recognized by | Higher Education Commission of Pakistan, HEC | Category | "Y" | Journal Name | IBT Journal of Business Studies | Publisher Name | ILMA University | Jel Classification | - | DOI | http://dx.doi.org/10.46745/ilma.jbs.2016.12.02.02 | ISSN no (E, Electronic) | 2409-6520 | ISSN no (P, Print) | 2416-8393 | Country | Pakistan | City | Karachi | Institution Type | University | Journal Type | Open Access | Manuscript Processing | Blind Peer Reviewed | Format | Paper Link | http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/12.2/2.pdf | Page | 25-36 |