Title: Dividend payout and corporate governance in emerging markets: which governance provisions matter?

Authors: Thomas O'Connor

Addresses: Department of Economics, Finance and Accounting, National University of Ireland Maynooth, Maynooth, Co. Kildare, Ireland

Abstract: In this paper I examine the relationship between individual corporate governance provisions and corporate dividend payout. Using a sample of 220 firms from 21 emerging market countries, I show that dividend payout is an outcome of strong corporate governance. On closer inspection, I find that dividend payouts tend to be greater in firms which score highly in measures of board independence and accountability. I find some evidence which suggests that dividends substitute for a lack of transparency in emerging market firms.

Keywords: corporate governance; outcome models; substitution agency models; dividends; dividend payout; emerging markets; board independence; accountability; transparency.

DOI: 10.1504/IJCG.2013.055754

International Journal of Corporate Governance, 2013 Vol.4 No.2, pp.181 - 207

Received: 21 Jun 2012
Accepted: 07 Jun 2013

Published online: 04 May 2014 *

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