Title: Impact of corporate governance on dividend policy in India

Authors: Pankaj Chaudhary; Narain Chandra

Addresses: Department of Financial Studies, University of Delhi, Delhi-110021, India ' Faculty of Management Studies, University of Delhi, Delhi-110007, India

Abstract: The basic objective of this study is to analyse the impact of corporate governance system on the dividend payment for Indian firms. We have taken the data for non-financial group A companies of BSE for the time period pertaining to 2010-2017. The corporate finance data is ridden with the endogeneity problem and in order to deal with this issue, we have applied dynamic panel data system to study the relationship between governance system and dividend payments in India. We find that the firms with strong corporate governance pay higher dividends as compared to the weak governance system firms. The board size is positively related to the payment of dividends and promoters' shareholding is negatively related to the dividend payments.

Keywords: corporate governance; agency problems; dividends; GMM; dynamic panel data; India.

DOI: 10.1504/AAJFA.2021.115671

Afro-Asian Journal of Finance and Accounting, 2021 Vol.11 No.3, pp.337 - 352

Received: 10 Jun 2019
Accepted: 06 Apr 2020
Published online: 16 Jun 2021 *

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