Title: Board attributes and dividend payout policy: pre- and post-MCCG 2012 Malaysian

Authors: Hussain Tahir; Sarfraz Hussain; Mahfuzur Rahman; Ridzuan Masri

Addresses: International University of Malaya-Wales, A, Administration Wing, City Campus, Jalan Tun Ismail, 50480 Kuala Lumpur, Federal Territory of Kuala Lumpur, Malaysia ' Azman Hashim International Business School, Universiti Teknologi Malaysia, Kuala Lumpur, Malaysia ' Faculty of Business and Accountancy, University of Malaya (UM), 50603 Kuala Lumpur, Malaysia ' School of Management and Business, Manipal International University, Malaysia

Abstract: This study examines the effectiveness of board attributes in compelling dividend payout policy after the amended Malaysian Code of Corporate Governance (MCCG) in 2012, among registered non-financial companies of Bursa Malaysia. A difference-in-difference two-tailed t-test is used to examine dividend payout pre- and post-MCCG 2012 using data from a sample of 203 Bursa Malaysia listed non-financial firms for the periods 2005 to 2011 and 2012 to 2018. This study examines the influence of board attributes on dividend payout pre- and post-MCCG 2012. This paper is among the first empirical studies that evaluate the effectiveness of board attributes in mitigating the conflict in the announced dividend between the pre- and post-reviewed MCCG. The empirical results show that board attributes are a significant and effective factor in stabilising the dividend payout policy after the modification of MCCG in 2012. The findings called for further investigation into the roles of board attributes in justifying the dividend payout policy. The research paper can assist the security exchange commission in creating ways to protect investors. This study can also assist in attracting potential new investors to Bursa Malaysia by smoothing MCCG future policies.

Keywords: board attributes; dividend payout; board tenure; Malaysian Code of Corporate Governance; MCCG.

DOI: 10.1504/IJEPEE.2023.128385

International Journal of Economic Policy in Emerging Economies, 2023 Vol.17 No.1, pp.48 - 63

Received: 26 Jun 2019
Accepted: 09 Jul 2020

Published online: 19 Jan 2023 *

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