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

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  • Thomas O'Connor

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.

Suggested Citation

  • Thomas O'Connor, 2013. "Dividend payout and corporate governance in emerging markets: which governance provisions matter?," International Journal of Corporate Governance, Inderscience Enterprises Ltd, vol. 4(2), pages 181-207.
    • Handle: RePEc:ids:ijcgov:v:4:y:2013:i:2:p:181-207
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