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Characteristics of the Board of Directors and Dividend Policy: A Case Study of Banks in Western Balkans

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  • Milašinović Marko

    (a University of Kragujevac, Faculty of Hotel Management and Tourism Vrnjačka Banja, Vojvođanska 5a, 36210 Vrnjačka Banja, Serbia)

  • Radojević Aleksandra
  • Jovković Biljana

    (b University of Kragujevac, Faculty of Economics, Liceja Kneževine Srbije 3, 34000 Kragujevac, Serbia)

Abstract

This paper examines the influence of the size and participation of women in the board of directors on the dividend policy of banks in Western Balkans. The research covered 104 banks, observing their dividend policy from 2017 to 2019. The dividend payout ratio was measured by the dividend policy. A relatively small number of banks paid dividends during the observation period. By applying the Fixed-Effect model, it was determined that the size of the board of directors has a statistically significant positive impact on the dividend policy of observed banks. Concerning the participation of women on the board of directors, a statistically significant impact on the dividend policy of banks was not identified. In addition to contributing to the existing literature on corporate finances, the research results can be crucial to investors when deciding to invest funds in bank stocks.

Suggested Citation

  • Milašinović Marko & Radojević Aleksandra & Jovković Biljana, 2023. "Characteristics of the Board of Directors and Dividend Policy: A Case Study of Banks in Western Balkans," Naše gospodarstvo/Our economy, Sciendo, vol. 69(1), pages 10-18, March.
    • Handle: RePEc:vrs:ngooec:v:69:y:2023:i:1:p:10-18:n:3
    DOI: 10.2478/ngoe-2023-0002
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    References listed on IDEAS

    as
    1. Chen, Jie & Leung, Woon Sau & Goergen, Marc, 2017. "The impact of board gender composition on dividend payouts," Journal of Corporate Finance, Elsevier, vol. 43(C), pages 86-105.
    2. Rafael La Porta & Florencio Lopez‐de‐Silanes & Andrei Shleifer & Robert W. Vishny, 2000. "Agency Problems and Dividend Policies around the World," Journal of Finance, American Finance Association, vol. 55(1), pages 1-33, February.
    3. Shenghui Tong & James Murtagh & Richard Proctor, 2022. "Do ADR Firms Have Different Dividend Policies Than U.S. Firms? A Comparative Study," IJFS, MDPI, vol. 10(1), pages 1-10, February.
    4. Lukas Setia‐Atmaja & George A. Tanewski & Michael Skully, 2009. "The Role of Dividends, Debt and Board Structure in the Governance of Family Controlled Firms," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 36(7‐8), pages 863-898, September.
    5. Vu Quang Trinh & Ngan Duong Cao & Linh Hai Dinh & Hong Ngoc Nguyen, 2021. "Boardroom gender diversity and dividend payout strategies: Effects of mergers deals," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 6014-6035, October.
    6. Lukas Setia‐Atmaja & George A. Tanewski & Michael Skully, 2009. "The Role of Dividends, Debt and Board Structure in the Governance of Family Controlled Firms," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 36(7‐8), pages 863-898, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Banks; Board of directors; Gender structure; Dividend policy; Western Balkans; banke; upravni odbor; struktura po spolu; dividendna politika; Zahodni Balkan;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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