Characteristics of the Chairman of the Board of Directors and Their Impact on Dividend Payments in the Moroccan Stock Exchange

Reda Louziri () and Khadija Oubal
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Reda Louziri: Faculty of Legal, Economic and Social Sciences—Souissi at Mohammed V University in Rabat, Rabat 8007, Morocco
Khadija Oubal: Faculty of Legal, Economic and Social Sciences—Souissi at Mohammed V University in Rabat, Rabat 8007, Morocco

JRFM, 2025, vol. 18, issue 2, 1-18

Abstract: This study examines the influence of chairman characteristics on dividend policy within Moroccan firms listed on the Casablanca Stock Exchange, addressing a critical gap in the behavioral finance literature. This research focuses on five key attributes of chairmen—age, gender, nationality, tenure, and founder status—and analyzes their impact on dividend decisions over a 16-year period (2003–2018). A fixed effects panel data model was employed, incorporating six control variables—firm age, growth opportunities, size, board size, female representation, and foreign ownership. The results demonstrate that chairman age and tenure significantly affect dividend policy. Older chairmen are more risk-averse, favoring higher dividend distributions to ensure financial stability, while longer-tenured chairmen tend to retain earnings for aggressive investments, reflecting overconfidence. The other variables—gender, nationality, and founder status—showed no statistically significant effects in this context. This research provides the first empirical evidence on the relationship between chairman characteristics and dividend policy in Morocco. The findings offer valuable insights for investors, analysts, and policymakers in emerging markets, emphasizing the role of leadership traits in corporate financial strategies. By highlighting the importance of behavioral factors, this study enhances understanding of dividend policy determinants in developing economies.

Keywords: dividend policy; behavioral finance; chairman characteristics; chairman’s age; gender; nationality; tenure; founder of the firm (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
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