Corporate governance and dividend pay-out policy in UK listed SMEs

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

doi:10.1108/ijaim-02-2017-0020

Cited by 103 publications

(116 citation statements)

References 99 publications

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“…Corporate governance impacts investment, capital structure choices (Detthamrong et al, 2017) as well as dividend pay-out decisions (Setiawan and Phua, 2013). Extant research suggests that effective CG practices enhance the organizational performance (Beltratti and Stulz, 2012;Andreou et al, 2016;Elmagrhi et al, 2017;Pillai and Almalkawi, 2018). Board related parameters are assumed to be a proxy for corporate governance of firms (Boone et al, 2007;Andres and Vallelado, 2008).…”

Section: Literature Reviewmentioning

confidence: 99%

Do Board Characteristics Impact the Market Performance of Indian Banks?

Shukla

Narayanasamy

Dasgupta

2018

Asian Economic and Financial Review

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This paper explores the role of board characteristics of Indian banks on their market performance. We conducted panel data analysis on a sample of 29 Indian banks that form part of the National Stock Exchange (NSE) 500 index (covering a period of 8 years from 2009-2016). While ten board characteristics were considered as independent variables, Tobin"s Q was considered as the dependent variable (Tobin"s Q was assumed to be a proxy for market performance of banks). Findings suggest that only three out of ten board characteristics (average number of boards served, CEO duality and number of meetings conducted) positively affect market performance of Indian banks. Our sample included 29 Indian banks covering a period of 8 years. Also, other corporate governance mechanisms, such as characteristics of audit committee, stakeholder relations committee, nomination and remuneration committee and risk management committee were not considered for the study. Hence caution must be taken in generalizing the results of the study. Contribution/ Originality: This study is one of very few studies which have investigated the impact of board characteristics on the market performance of banks. Ten board characteristics are extracted from the annual reports of Indian banks and these may be used by researchers in the future, to act as proxy for corporate governance 1. INTRODUCTION Corporate Governance (CG) creates and sustains monitoring frameworks which guide the managerial actions such that the agents are motivated to enhance the well-being of the various stakeholders of the firm (Clarke, 1998; Cooper and Owen, 2007). The literature has extensively described the positive effect of corporate governance on the financial performance of firms. For instance, firms with better CG mechanisms report superior profitability

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Section: Literature Reviewmentioning

confidence: 99%

Do Board Characteristics Impact the Market Performance of Indian Banks?

Shukla

Narayanasamy

Dasgupta

2018

Asian Economic and Financial Review

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“…Empirically, despite increasing suggestions that board diversity can have significant influence on firms' environmental performance (McGuinness et al, 2017), existing studies have mainly investigated the effect of board diversity on (i) firm financial performance (Erhardt et al, 2003;Carter et al, 2003Carter et al, , 2010; (ii) corporate governance disclosures (Al-Bassam et al, 2018;Elmagrhi et al, 2016Elmagrhi et al, , 2017Elmagrhi et al, , 2018Sarhan & Ntim, 2018a, b); and (iii) environmental and social disclosures (Barako & Brown, 2008;Liao et al, 2015;Alnabsha et al, 2018). In contrast, studies investigating the impact of board diversity on firms' actual environmental performance are generally rare (Bear et al, 2010;Boulouta, 2013;Hafsi & Turgut, 2013;Harjoto et al, 2015).…”

Section: Introductionmentioning

confidence: 99%

A study of environmental policies and regulations, governance structures, and environmental performance: The role of female directors

et al. 2018

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This paper seeks to contribute to the existing business strategy and the environment literature by examining the effect of governance structures on environmental performance within a unique context of improving environmental governance, policies, regulations and management. Specifically, we investigate the extent to which corporate board gender diversity, including the proportion, age and level of education of female directors, affect environmental performance of Chinese publicly listed corporations. Using one of the largest Chinese datasets to-date, consisting of a sample of 383 listed A-shares from 2011 to 2015 (i.e., observations of 1,674), our findings are threefold. First, we find that the proportion and age of female directors have a positive effect on the overall corporate environmental performance. Second, our findings indicate that the proportion and age of female directors also have a positive effect on the three individual environmental performance components, namely environmental (i) strategy, (ii) implementation and (iii) disclosure, respectively. Finally, and by contrast, we do not find any evidence that suggests that the level of education of female directors has any impact on environmental performance, neither the overall environmental performance measure nor its individual components. Our findings have important implication for regulators and policy-makers. Our evidence is robust to controlling for alternative measures, other governance and firm-level control variables, and possible endogeneities. We interpret our findings within a multitheoretical framework that draws insights from agency, legitimacy, neo-institutional, resource dependence, stakeholder, and tokenism theoretical perspectives.

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“…Using data from 117 Canadian companies listed on the Toronto Stock Exchange, [22] found that managers use the dividend policy to protect shareholders and to reduce agency cost. [23] found corporate governance has a significant effect on dividend policy for 1,096 SMEs in the UK. [24] concluded that firms with a higher creditor rights protection (good corporate governance) are more likely to pay higher dividend.…”

Section: A Dividend Policymentioning

confidence: 98%

“…Previous studies that support the outcome hypothesis include [11,[22][23][24][25]. Using data from 117 Canadian companies listed on the Toronto Stock Exchange, [22] found that managers use the dividend policy to protect shareholders and to reduce agency cost.…”

Section: A Dividend Policymentioning

confidence: 99%

Dividend Policy in Indonesian Companies: Does Corporate Governance Matter?

2019

IJRTE

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This study investigates whether corporate governance matters with regards to the dividend policy in Indonesian companies. Previous studies on this subject have mostly been done in developed countries, which have adopted the common law, such as in the US and the UK. This study uses 26 companies operating in the finance industry. Secondary data is used from several sources, such as the annual report and financial statement and related websites. This study uses an independent sample t-test to analyse the data. Corporate governance matters for dividend policy in Indonesian companies. It is evidenced by the fact that there is a significant differ ence in managerial ownership and board size between dividend paid and dividend not paid. Profitability also differs between dividend paid and dividend not paid companies; companies with higher profitability tend to pay dividend. This study provides empirical evidence that corporate governance matters for dividend policy in Indonesian companies. There are two contributions of this study: the result confirms the resource dependence theory and the convergence governance hypothesis.

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Corporate governance and dividend pay-out policy in UK listed SMEs

Cited by 103 publications

References 99 publications

Do Board Characteristics Impact the Market Performance of Indian Banks?

Do Board Characteristics Impact the Market Performance of Indian Banks?

A study of environmental policies and regulations, governance structures, and environmental performance: The role of female directors

Dividend Policy in Indonesian Companies: Does Corporate Governance Matter?

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