 Firm-level governance quality and dividend decisions: evidence from IndiaP. Krishna Prasanna International Journal of Corporate Governance, 2014, vol. 5, issue 3/4, 197-222 Abstract: Motivated by the outcome model of agency theory, the primary research issue addressed in this paper is to measure firm-level governance quality of Indian firms and examine its impact on dividend payment decision and payout-level decision. The companies with higher corporate governance quality have higher dividends payout ratios. It was found that board size, independence, monitoring quality, and managerial remuneration had positive impact on dividend payout. Insiders' (promoter directors) equity holding had a negative impact on dividend payout; whereas, the share holding of outside owners had a positive impact. The results support the outcome model proposed by La Porta et al. (2000a, 2000b) and infer that better governed companies tend to have higher payout ratios. The results also provide positive evidence about the impact of recent corporate governance reforms introduced in India. Keywords: dividends; corporate governance; board independence; ownership pattern; governance quality; India; agency theory; dividend payments; payment decisions; payout levels; board size; monitoring quality; managerial remuneration; equity holding; share holding. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijcgov:v:5:y:2014:i:3/4:p:197-222 Access Statistics for this article More articles in International Journal of Corporate Governance from Inderscience Enterprises Ltd |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.