Corporate Governance and Dividend Pay-Out Policy in UK Listed SMEs: The Effects of Corporate Board Characteristics

Elmagrhi, Mohamed H.; Ntim, Collins G.; Crossely, Richard; Malagila, John; Fosu, Samuel; Vu, Tien V.

doi:10.2139/ssrn.2938420

Cited by 29 publications

(71 citation statements)

References 95 publications

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“…Prior studies (Alhazaimeh et al, 2014, Barako et al, 2006, Elzahar and Hussainey, 2012, Laksmana, 2008, Ntim and Soobaroyen, 2013a, b, Ntim et al, 2012a, Samaha et al, 2012, Wang and Hussainey, 2013Elmagrhi et al, 2016Elmagrhi et al, , 2017 have relied on a number of theories, such as agency, legitimacy, resource dependence and stakeholder theories to inform and interpret the motivations of managers to engaging in mandatorily and voluntarily disclosures. These theories may inform and interpret the motivations differently.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Corporate boards, ownership structures and corporate disclosures

Alnabsha

Abdou

Ntim

et al. 2018

JAAR

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113

130

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Purpose: This paper investigates the effect of corporate board attributes, ownership structure and firm-level characteristics on both corporate mandatory and voluntary disclosure behaviour in annual reports of Libyan firms.Design/methodology/approach: Multivariate regression techniques are used to estimate the effect of corporate board and ownership structures on mandatory and voluntary disclosures of a sample of Libyan firms between 2006 and 2010.Findings: First, we find that board size, board composition, the frequency of board meetings and the presence of an audit committee have an impact on the level of corporate disclosure. Second, this study finds an evidence that director ownership, foreign ownership, government ownership and institutional ownership have a non-linear effect on the level of corporate disclosure. Finally, we find that firm age, liquidity, listing status, industry type and auditor type are positively associated with the level of corporate disclosure.Limitation: Future research could investigate disclosure practices using other channels of corporate disclosure, such as corporate websites. Useful insights may be offered also by future studies by conducting in-depth interviews with corporate managers, directors and owners regarding these issues.Implication: Investors may also rely on such corporate governance characteristics to shape expectations about voluntary and/or mandatory information disclosure. Originality/value: Existing disclosure studies have mainly examined governance and voluntary disclosure relationship in non-listed firms. Our study, therefore, extends, as well as contributes to the existing literature by the examining the governance-disclosure nexus relating to both mandatory and voluntary disclosures in both listed and non-listed firms.

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Section: Theoretical Frameworkmentioning

confidence: 99%

Corporate boards, ownership structures and corporate disclosures

Alnabsha

Abdou

Ntim

et al. 2018

JAAR

Self Cite

113

130

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“…In the context of corporate governance, agency theory has received specific attention by researchers (Jiraporn et al 2011). The study of the relationship between dividends and corporate governance is a recent research topic (Yarram and Dollery 2015) that can be addressed under two distinct approaches: the substitution approach and the outcome approach (La Porta et al 2000b;Adjaoud and Ben-Amar 2010;Jiraporn et al 2011;Yarram and Dollery 2015;Elmagrhi et al 2017). Under the substitution approach, dividends can play a role as substitutes for governance mechanisms contributing to mitigating agency costs and managerial entrenchment through the reduction of the free cash flow (Jiraporn et al 2011), thus limiting managers' decisions based on their own interests and implying that the corporation, to finance new projects, will resort to financial markets that act as an additional layer of control (Jiraporn et al 2011).…”

Section: Literature Reviewmentioning

confidence: 99%

“…The literature covers the relationship between corporate governance and dividend policy based on different approaches and different contexts (e.g., La Porta et al 2000b;Gugler and Yurtogly 2003;Adjaoud and Ben-Amar 2010;Jiraporn et al 2011;Yarram and Dollery 2015;Esqueda 2016;Elmagrhi et al 2017;Atanassov and Mandell 2018). However, previous research mostly focused on contexts where the widely held corporation model is dominant, which may not reflect the specific agency problems and shareholders' protection occurring elsewhere (La Porta et al 2000b), which may influence the importance of dividends and the preferences of shareholders regarding dividend policies and other decisions.…”

Section: Introductionmentioning

confidence: 99%

Corporate Governance and Dividend Policy in the Presence of Controlling Shareholders

Rodrigues

Felício

Matos

2020

JRFM

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Based on agency theory, we focused on the influence of corporate governance in the dividend policy of large listed firms with headquarters in continental Europe countries. Previous research focused on the influence of corporate governance on the performance and risk of listed firms, but the influence of corporate governance on the dividend policy has rarely been addressed despite the importance of dividends for shareholders and the implications on the free cash-flow, whose application may be a source of conflicts between managers and shareholders. In this paper, we study the influence of a set of governance mechanisms on the dividend policy over 12 years (2002 to 2013). The results, based on a panel data analysis, support the importance of governance mechanisms toward the protection of shareholders’ interests, and reveal that the decisions on whether to pay dividends and how much to pay are grounded on different antecedents.

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“…First, we test for any possible endogeneity between the feedback and investment decision and second, we re-estimate the proposed model using an alternative measure of the dependent variable (i.e., natural log of funds pledged against the goal amount of a project (Belleflamme et al 2014;Zheng et al 2014Zheng et al , 2016). To control for the possible issue of endogeneity (Alhares et al, 2017(Alhares et al, , 2018Alnabsha et al, 2018;Elamer et al, 2018;Elmagrhi et al, 2017Elmagrhi et al, , 2018Haque and Ntim, 2018) between the feedback and financial investors' decisions, we employ the technique of Baum et al (2007) and Wooldridge (2010). To account for this potential issue (Fosu et al, 2017;Nasr and Ntim, 2018;Ntim, 2012Ntim, , 2013aShahab et al, 2018;Wang et al, 2015), we re-estimate the model using two-stage least squares (2SLS) technique.…”

Section: Robustness Checksmentioning

confidence: 99%

Individual’s financial investment decision-making in reward-based crowdfunding: evidence from China

Shahab

Riaz

et al. 2018

Applied Economics Letters

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This paper extends the work of Cecere et al. (Appl. Econ., 49(57): 5802-5813, 2017) and explores the antecedents of backers' decision to invest in projects from eight categories on a reward-based crowdfunding platform in China. We extract data from 2011 to 2016 from the pioneer Chinese reward-based crowdfunding site "Demohour". Our empirical investigation using Ordinary Least Squares (OLS) reveals that feedback score, social capital (followers on Weibo, project sharing on social media) and project quality (number of updates) are key motivating factors in investment decision and subsequently, project success or failure. Robustness tests also confirm the findings.

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Corporate Governance and Dividend Pay-Out Policy in UK Listed SMEs: The Effects of Corporate Board Characteristics

Cited by 29 publications

References 95 publications

Corporate boards, ownership structures and corporate disclosures

Corporate boards, ownership structures and corporate disclosures

Corporate Governance and Dividend Policy in the Presence of Controlling Shareholders

Individual’s financial investment decision-making in reward-based crowdfunding: evidence from China

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