The impact of corporate governance on dividend decision of firms: Evidence from Pakistan

摘要

This study has been conducted to investigate the impact of corporate governance attributes especially board attributes on the decision of dividend?payment of firms in developing economy of Pakistan. Board attributes are measured by three variables: Board Size, Board Independence, and CEO duality while dividend payment decision is measured by a dummy variable DIVID. A total of 77 non financial firms listed on Karachi Stock Exchange (KSE) are used to determine the relationship of the board attributes and decision of dividend payment of firms for the period 2007 to 2011. Descriptive statistics, Correlation Matrix, Logistic Regression, and Probit regression are used for the analysis of data. A significant positive relationship is found between the Board Size and dummy variable DIVID. It has also been found that presence of Independent Board leads to no declaration of dividend payment. The study also found insignificant positive relationship between the CEO duality and DIVID of the firms.