Dividend Policy and Corporate Governance Perspective

Abstract

This study examines the influence of corporate governance (Board Size, Board Independence and Board Meetings) and dividend policies of the Pakistani firms. The study covers four important sectors i.e. Cement, Textile, Banks and Sugar of the economy for the time span of 2009 to 2015. By employing the regression analysis, we found that Board size and Board independence does matters significantly for the divided policies of the firm. We also observed that CEO ownership has significant negative influence on the dividend payout ratio of the firm due to entrepreneurial effect. Furthermore in the ownership effect, we found that foreign ownership of the firm has positive influence on the dividend payout ratio of the firms.