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Corporate governance - Accepted Version IJAIM March 2017.pdf (421.16 kB)

Corporate governance and dividend pay-out policy in UK listed SMEs: the effects of corporate board characteristics

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posted on 2023-06-10, 03:30 authored by Mohamed H Elmagrhi, Collins G Ntim, Richard M Crossley, John K Malagila, Samuel FosuSamuel Fosu, Tien V Vu
Purpose The purpose of this paper is to examine the extent to which corporate board characteristics influence the level of dividend pay-out ratio using a sample of UK small- and medium-sized enterprises from 2010 to 2013 listed on the Alternative Investment Market. Design/methodology/approach The data are analysed by employing multivariate regression techniques, including estimating fixed effects, lagged effects and two-stage least squares regressions. Findings The results show that board size, the frequency of board meetings, board gender diversity and audit committee size have a significant relationship with the level of dividend pay-out. Audit committee size and board size have a positive association with the level of dividend pay-out, whilst the frequency of board meetings and board gender diversity have a significant negative relationship with the level of dividend pay-out. By contrast, the findings suggest that board independence and CEO role duality do not have any significant effect on the level of dividend pay-out. Originality/value This is one of the first attempts at examining the relationship between corporate governance and dividend policy in the UK’s Alternative Investment Market, with the analysis distinctively informed by agency theoretical insights drawn from the outcome and substitution hypotheses.

History

Publication status

  • Published

File Version

  • Accepted version

Journal

International Journal of Accounting and Information Management

ISSN

1834-7649

Publisher

Emerald

Issue

4

Volume

25

Page range

459-483

Department affiliated with

  • Accounting and Finance Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2022-05-11

First Open Access (FOA) Date

2022-05-11

First Compliant Deposit (FCD) Date

2022-05-11

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