Corporate governance and dividend policy in Sri Lankan firms: a data triangulation approach

H. Kent Baker, Narayanage Jayantha Dewasiri, Sandaram P. Premaratne and Weerakoon Yatiwelle Koralalage

Qualitative Research in Financial Markets, 2020, vol. 12, issue 4, 543-560

Abstract: Purpose - This paper aims to investigate the relation between corporate governance and dividend policy in Sri Lankan firms. Design/methodology/approach - The data set consists of market data using 1,608 firm-year observations from 201 firms listed on the Colombo Stock Exchange and survey-based data from 151 respondents from the same 201 firms. The authors use data triangulation to examine the two approaches. Findings - The analysis of the market data reveals that a significantly positive relation between corporate governance on both the propensity to pay dividends and dividend payout. Survey analysis confirms these findings. Triangulated evidence supports the outcome model of dividends, free cash flow and agency cost theories. Practical implications - The findings are useful not only for management in developing suitable corporate governance practices and dividend policies for their firms but also for shareholders in evaluating both existing and new investments. Future researchers should investigate the same phenomenon in other contexts using triangulation approaches to confirm their findings. Originality/value - This study is the first to use governance indices both in terms of survey and market-based data to examine the relation between corporate governance and dividend policy.

Keywords: Corporate governance; Sri Lanka; Dividend policy; Triangulation approach (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:qrfmpp:qrfm-11-2019-0134

DOI: 10.1108/QRFM-11-2019-0134

Access Statistics for this article

Qualitative Research in Financial Markets is currently edited by Prof Bruce Burton

More articles in Qualitative Research in Financial Markets from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().