2020
DOI: 10.1007/s11156-020-00924-7
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Board busyness and new insights into alternative bank dividends models

Abstract: This study examines the possible opposing effects of the board function of busyness (i.e. the presence of busy independent non-executive directors serving on multiple boards) on bank dividend payout patterns between two alternative payouts models (i.e. conventional and Islamic). Using an international sample for listed banks during the periods of 2006-2018, we show that the busyness of boards of directors can explain differential dividend payouts behaviour between two banking systems. For conventional banking … Show more

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Cited by 20 publications
(43 citation statements)
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“…Several studies such as, Carpenter and Westphal (2001), Fich and Shivdasani (2006), Tanyi and Smith (2015) argue that since interlock directors being busy and stretched, such directors may provide less effective monitoring of management. In addition, Trinh et al (2020b) find that interlocked directors encounter with difficulties in resuming their monitoring roles diligently due to the limited time available from serving on several boards. This could create more conflicts of interests between shareholders and managers and viewed negatively by the stock market and investors in particular.…”
Section: Ac Interlock and Fldmentioning
confidence: 99%
“…Several studies such as, Carpenter and Westphal (2001), Fich and Shivdasani (2006), Tanyi and Smith (2015) argue that since interlock directors being busy and stretched, such directors may provide less effective monitoring of management. In addition, Trinh et al (2020b) find that interlocked directors encounter with difficulties in resuming their monitoring roles diligently due to the limited time available from serving on several boards. This could create more conflicts of interests between shareholders and managers and viewed negatively by the stock market and investors in particular.…”
Section: Ac Interlock and Fldmentioning
confidence: 99%
“…According to Ahmed et al (2020), dividend policy is a "puzzle" whose determinants are still poorly understood. At the same time, the increase in additional research work on the DDP-like Taleb and Ben Lahouel (2020); Duqi et al (2020); Tahir et al (2020aTahir et al ( , 2020b; Endang et al (2020); Grey et al (2020); Juhmani (2020); Ahmed et al (2020); Thompson and Adasi Manu (2021); Ain et al (2021); Bataineh (2021); Dissanayake and Dissabandara (2021); Hasan et al (2021); Trinh et al (2021); El Ammari (2021) and even other authors-justifies the fact that this research topic is a topical subject and that the debate on the reality of this famous financial phenomenon is not yet closed and still requires heated debate.…”
Section: Introductionmentioning
confidence: 99%
“…While the majority of prior studies focused on operational, financial, macroeconomic and microeconomic determinants of banking financial stability (e.g., Chan and Milne 2014 ; Ashraf and Rizwan 2016; Rumler and Waschiczek 2016 ; Elnahass et al 2020a , b , 2021 ; Trinh et al 2020a ), limited attention has been paid to identifying the role of political stability in prompting bank stability. Accordingly, it remains questionable whether banks can still operate and mitigate risk during accelerating political events like terrorism, 1 particularly for those banks located in vulnerable countries.…”
Section: Introductionmentioning
confidence: 99%
“…Some have generally documented the presence of an association between terrorism and economic activities (De Mesquita 2005 ; Bardwell and Iqbal 2021 ), whilst others indicate that economic downturns are associated with high numbers of terrorist attacks (Blomberg et al 2004 ; Drakos and Gofas 2004 ; Efobi et al 2015 ). On the other hand, bank financial stability literature has commonly investigated issues related to corporate governance, risk monitoring and financial performance and, recently, emerging questions related to the COVID-19 pandemic (e.g., Chan and Milne 2014 ; Rumler and Waschiczek 2016 ; Elnahass et al 2020a , b , 2021 ; Trinh et al 2020a ). This literature is generally classified into three categories: one strand focuses on the determinants of financial performance, the second strand investigates the determinants of banks risk, and a few studies investigate factors that affect both bank performance and risk in relation to the adopted governance and internal control mechanisms.…”
Section: Introductionmentioning
confidence: 99%
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