Board dynamics, dividend pay-out policy and banking efficiency in an emerging market context
by Daniel Ofori-Sasu; Saint Kuttu; Elikplimi Komla Agbloyor; Joshua Yindenaba Abor
International Journal of Business and Emerging Markets (IJBEM), Vol. 15, No. 1, 2023

Abstract: In this paper, we examine the interactive role of board dynamics in explaining the link between dividend pay-out policy and banking efficiency. Prior to that, it investigates whether board dynamics contribute to dividend pay-out policy. The study applies data from 23 Ghanaian banks over the period 2010-2020. The panel-truncated regression was used to examine the interaction effect of board dynamics and dividend pay-out on banking efficiency. We found that the banks in Ghana do not fully utilise their inputs to be able to operate on their optimal efficiency. We found that board independence, board size and tenure of CEO are important determinants of dividend pay-out policy. Further, free cash flow' hypothesis explains a negative impact of board dynamics and dividend pay-out policy on banking efficiency. The current study makes novel contribution to the existing literature by establishing that board dynamics play a strong interactive role in the relationship between persistent dividend pay-out policies and banking efficiency.

Online publication date: Mon, 09-Jan-2023

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business and Emerging Markets (IJBEM):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com