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Ownership Structure, Board Size, Board Composition And Dividend Policy: New Evidence From Two Emerging Markets

Author

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  • Muhammad Sadiq Shahid, PhD

    (Bahauddin Zakariya University, Multan)

  • Dr.Faid Gul

    (Assistant Professor, FMS, NUML, Islamabad)

  • Muhammad Rizwan

    (Assistant Professor, Institute of Management Sciences, Bahauddin Zakariya University Multan)

  • Muhammad Hassan Bucha, PhD

    (Bahauddin Zakariya University, Multan)

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.

Suggested Citation

  • Muhammad Sadiq Shahid, PhD & Dr.Faid Gul & Muhammad Rizwan & Muhammad Hassan Bucha, PhD, 2016. "Ownership Structure, Board Size, Board Composition And Dividend Policy: New Evidence From Two Emerging Markets," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 12(2), pages 25-36.
    • Handle: RePEc:aib:ibtjbs:v:12:y:2016:i:2:p:25-36
    DOI: https://doi.org/10.46745/ilma.ibtjbs.2016.122.2
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    References listed on IDEAS

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    Cited by:

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    2. Sattar Khan & Yasir Kamal & Shahid Hussain & Muhammad Abbas, 2022. "Corporate governance looking back to look forward in Pakistan: a review, synthesis and future research agenda," Future Business Journal, Springer, vol. 8(1), pages 1-32, December.
    3. Mehmet Levent Erdaş & Emel Bachá Sımoes, 2020. "The Relationship between Audit Mechanisms and Dividend Payout Policy within the Framework of Corporate Governance: The Case of Turkey," Journal of Economy Culture and Society, Istanbul University, Faculty of Economics, vol. 62(62), pages 255-284, December.

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