OWNERSHIP STRUCTURE, BOARD SIZE, BOARD COMPOSITION AND DIVIDEND POLICY: NEW EVIDENCE FROM TWO EMERGING MARKETS

PhD Muhammad Sadiq Shahid (), Dr.Faid Gul, Muhammad Rizwan and PhD Muhammad Hassan Bucha
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PhD Muhammad Sadiq Shahid: Bahauddin Zakariya University, Multan
Dr.Faid Gul: Assistant Professor, FMS, NUML, Islamabad
Muhammad Rizwan: Assistant Professor, Institute of Management Sciences, Bahauddin Zakariya University Multan
PhD Muhammad Hassan Bucha: Bahauddin Zakariya University, Multan

IBT Journal of Business Studies (JBS), 2016, vol. 12, issue 2, 25-36

Abstract: Good corporate governance practices build equilibrium between management and shareholders and eliminate agency problems, as results managers pursue a suboptimal dividend policy.The aim of this study is to examine the potential relationship between ownership structure, board size, board composition, CEO duality and dividend policy of 176 listed firms at KSE and 280 listed firms at BSI from 20102015.We used pooled OLS regression test to analyse 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 fixed effect method was chosen to test the hypothesis.We discover a positive association between managerial ownership, board size, board independent and dividend policy, while a negative association of 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 through 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 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:aib:ibtjbs:v:12:y:2016:i:2:p:25-36

DOI: 10.46745/ilma.ibtjbs.2016.122.2

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