Ayhan KAPUSUZOĞLU, Nildağ Başak CEYLAN, İbrahim Nandom YAKUBU

8823

The Effect of Corporate Governance on Firm Dividend Policy: Evidence from Ghana

The purpose of this research is to reveal at the influence of board independence on dividend policy of firms listed on the Ghana Stock Exchange. We employ a panel dataset covering the period 2008-2018 and apply the generalized method of moments technique. The results reveal that dividend per share is positively and significantly driven by board independence. We also find that larger audit committees are more likely to result in higher dividend payouts. On the other hand, frequent board meetings and remuneration committees reduce dividend payments. We further document that firm age has a significant positive impact on dividend payment. The findings suggest that increasing the proportion of non-executive directors will help preserve shareholders' interest by allowing for higher dividend payments.

Kurumsal Yönetimin Firma Temettü Politikası Üzerindeki Etkisi: Gana Örneği

Bu çalışmanın amacı, yönetim kurulu bağımsızlığının Gana Menkul Kıymetler Borsası'nda işlem gören firmaların temettü politikası üzerindeki etkisinin ortaya konulmasıdır. 2008-2018 dönemini kapsayan çalışmada, panel veri analizi yapılarak genelleştirilmiş momentler yöntemi uygulanmıştır. Çalışmanın bulguları incelendiğinde, hisse başına temettü ödemesi üzerinde yönetim kurulu bağımsızlığının istatistiksel olarak anlamlı ve pozitif bir etkiye sahip olduğu ayrıca, denetim komiteleri büyüdükçe şirketlerin verdikleri temettü miktarının da daha fazla olmasının olası olduğu ortaya konulmuştur. Ek olarak, yönetim kurulu ve ücret komitelerinin toplantı sıklığının da, temettü ödemelerini azalttığı ayrıca, firma yaşının temettü ödenmesi üzerinde pozitif ve istatistiksel olarak anlamlı bir etkisi olduğu bulunmuştur. Çalışmanın bulguları, harici üst düzey yöneticilerin oranının artırılmasının, daha yüksek temettü ödemelerine izin verilmesine ve böylelikle hissedarların çıkarlarının korunmasına yardımcı olacağını göstermektedir.
PDF

___

  • Ajanthan, Alagathurai (2013), “Corporate Governance and Dividend Policy: A Study of Listed Hotels and Restaurant Companies in Sri Lanka”, International Journal of Management, IT and Engineering, 3(12), pp. 98-114.
  • Al Shabibi, Badar Khalid – Gengatharan, Ramesh (2011), “An Empirical Study on the Determinants of Dividend Policy in the UK”, International Research Journal of Finance and Economics, 80(12), pp. 105-124.
  • Al‐Najjar, Basil - Hussainey, Khaled (2009), “The Association between Dividend Payout and Outside Directorships”, Journal of Applied Accounting Research, 10(1), pp. 4-19.
  • Al-Najjar, Basil - Kilincarslan, Erhan (2019), “What Do We Know About the Dividend Puzzle? A Literature Survey”, International Journal of Managerial Finance, 15(2), pp. 205-235.
  • Alshabibi, Badar - Pria, Shanmuga - Hussainey, Khaled (2021), “Does Board Structure Drive Dividends Payout? Evidence from The Sultanate of Oman”, Corporate Ownership and Control, 18(4), pp. 218-230.
  • Amedi, Ari Muhammad Rashid - Mustafa, Aree (2021), “The Relationship between Board Characteristics and Corporate Dividend Policy: Evidence from Jordan”, Bulletin of Accounting and Finance Reviews, 4(1), pp. 1-9.
  • Amidu, Mohammed - Abor, Joshua (2006), “Determinants of Dividend Payout Ratios in Ghana”, Journal of Risk Finance, 7(2), pp. 136-146.
  • Ansar, Irtaza - Butt, Arslan Ali - Shah, Syed Basit Hussain (2015), “Impact of Dividend Policy on Shareholder's Wealth”, International Review of Management and Business Research, 4(1), pp. 89-95.
  • Arellano, Manuel - Bond, Stephen (1991), “Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations”, The Review of Economic Studies, 58(2), pp. 277-297.
  • Asamoah, Gordon Newlove (2011), “Corporate Governance and Dividend Policy: An Evidence from Ghana”, Available at SSRN No: 1845429.
  • Aziza, Desiana Dinda Nur - Dewi, Riana R. - Fajri, Rosa Nikmatul (2020), “Effect of Board Independence, Firm Size, Debt to Equity Ratio, Net Profit Margin Towards Dividend Policy in Companies (Sub Sectors of Food and Beverages Listed in Bei 2009- 2018)”, JRAK: Jurnal Riset Akuntansi & Komputerisasi Akuntansi, 11(1), pp. 117- 132.
  • Baker, H. Kent - Dewasiri, N. Jayantha – Koralalage, Weerakoon Banda Yatiwelle - Abdul Azeez, Athambawa (2019), “Dividend Policy Determinants of Sri Lankan Firms: A Triangulation Approach”, Managerial Finance, 45(1), pp. 2-20.
  • Bakri, Mohd Ashari - Abd Jalil, Mohamad Isa - Hassan, Zakiah (2021), “Dividend Policy in Malaysia: A Comparison of Determinants Pre and Post Malaysian Code on Corporate Governance”, International Journal of Banking and Finance, 16(2), pp. 1-22.
  • Bathala, Chenchuramaiah T. - Rao, Ramesh P. (1995), “The Determinants of Board Composition: An Agency Theory Perspective”, Managerial and Decision Economics, 16(1), pp. 59-69.
  • Black, Fischer (1976), “The Dividend Puzzle”, Journal of Portfolio Management, 2(2), pp. 5- 8. Bokpin, Godfred A. (2011), “Ownership Structure, Corporate Governance and Dividend Performance on the Ghana Stock Exchange”, Journal of Applied Accounting Research, 12(1), pp. 61-73.
  • Boonyanet, Wachira - Promsen, Waewdao (2020), “The Mediating Effects of Audit Quality on the Relationship between Corporate Governance and Cash Dividends”, Chulalongkorn Business Review, 42(2), pp. 30-53.
  • Boshnak, Helmi A. (2021), “The Impact of Board Composition and Ownership Structure on Dividend Payout Policy: Evidence from Saudi Arabia”, International Journal of Emerging Markets, Vol. Ahead-Of-Print No. Ahead-Of-Print. https://doi.Org/10.1108/IJOEM-05-2021-0791 (14.01.2022).
  • Botchway, NanaAma. - Quaye, Emmanueler (2021), “The Corporate Governance Review: Ghana”. Retrieved from: https://thelawreviews.co.uk/title/the-corporate-governancereview/ ghana (06.02.2022).
  • Brealey, Richard A. - Myers, Stewart (2003), Principles of Corporate Finance, 7th Edition, New York: McGraw-Hill Education.
  • Kilincarslan, Erhan (2021), “The Influence of Board Independence on Dividend Policy in Controlling Agency Problems in Family Firms”, International Journal of Accounting and Information Management, 29(4), pp. 552-582.
  • Kuswanto, Adi - Kharisma, Ari – Adams, Sardiyo (2012), “Factors That Influence on Dividend Policy”, Conference in Business, Accounting, and Management (CBAM), 1(1), pp. 23-33.
  • Paramita, Ratna Wijayanti Daniar (2020), “Determinants of Dividend Policy”, Jurnal Ilmu Manajemen Advantage, 4(1), pp. 1-5.
  • Miller, Merton H. - Modigliani, Franco (1961), “Dividend Policy, Growth, and the Valuation of Shares”, The Journal of Business, 34(4), pp. 411-433.
  • Musiega, Maniagi - Juma, Dencomutirithia - Alala, Ondiek - Damianus, Okaka - Douglas, Musiega (2013), “Corporate Governance, Dividend Policy and Performance. Special Reference to Banks Listed on Nairobi Security Exchange Kenya”, International Journal of Innovative Research and Development, 2(5), pp. 1744-1764.
  • Nazar, Mohamed Cassim Abdul (2021), “The Influence of Corporate Governance on Dividend Decisions of Listed Firms: Evidence from Sri Lanka”, The Journal of Asian Finance, Economics, and Business, 8(2), pp. 289-295.
  • Pahi, Debasis - Yadav, Inder Sekhar (2018), “Role of Corporate Governance in Determining Dividend Policy: Panel Evidence from India”, International Journal of Trade, Economics and Finance, 9(3), pp. 111-115.
  • Rajput, Monika - Jhunjhunwala, Shital (2019), “Corporate Governance and Payout Policy: Evidence from India”, Corporate Governance: International Journal of Business in Society, 19(5), pp. 1117-1132.
  • Ranti, Uwuigbe Olubukunola (2013), “Determinants of Dividend Policy: A Study of Selected Listed Firms in Nigeria”, Manager, (17), pp. 107-119.
  • Rezaee, Zabihollah (2008), Corporate Governance and Ethics, Hoboken, NJ: John Wiley & Sons.
  • Riaz, Salman - Liu, Yanping - Ahmad, Muhammad Ishfaq (2016), “Dividend Policy and Corporate Governance Perspective”, Accounting and Finance Research, 5(3), pp. 77- 86.
  • Setia-Atmaja, Lukas (2010), “Dividend and Debt Policies of Family Controlled Firms: The Impact of Board Independence”, International Journal of Managerial Finance, 6(2), pp. 128-142.
  • Shahid, Muhammad Sadiq - Gul, Faid - Rizwan, Muhammad – Bucha, Muhammad Hassan (2016), “Ownership Structure, Board Size, Board Composition and Dividend Policy: New Evidence from Two Emerging Markets”, IBT Journal of Business Studies (JBS), 2(2), pp. 25-36.
  • Shehu, Musa (2015), “Board Characteristics and Dividend Payout: Evidence from Malaysian Public Listed Companies”, Research Journal of Finance and Accounting, 6(16), pp. 35-40.
  • Siregar, Muhammad Edo Suryawan - Vitrianudin, Erwin - Dalimunthe, Sholatia - Ahmad, Gatot Nazir - Zakaria, Adam - Suherman (2022), “Do Corporate Governance Mechanisms Matter for Dividend Policy? Evidence from Food and Beverage Industry in Southeast Asian Economies”, Academy of Accounting and Financial Studies Journal, 26(1S), pp. 1-14.
  • Tahir, Hussain - Masri, Ridzuan - Rahman, Md Mahfuzur (2020), “Impact of Board Attributes on the Firm Dividend Payout Policy: Evidence from Malaysia”, Corporate Governance: International Journal of Business in Society, 20 (5), pp. 919-937. Tamimi, Mohammad, & Takhtaei, Nasrollah (2014), “Relationship between Firm Age and Financial Leverage with Dividend Policy”, Asian Journal of Finance & Accounting, 6(2), pp. 53-63.
  • Thompson, Ephraim Kwashie - Manu, Sylvester Adasi (2021), “The Impact of Board Composition on the Dividend Policy of US Firms”, Corporate Governance: The International Journal of Business in Society, 21(5), pp. 737-753.
  • Tinungki, Georgina Maria - Robiyanto, Robiyanto - Hartono, Powell Gian (2022), “The Effect of COVID-19 Pandemic on Corporate Dividend Policy in Indonesia: The Static and Dynamic Panel Data Approaches”, Economies, 10(1), pp. 1-18.
  • Uwalomwa, Uwuigbe - Olamide, Olusanmi - Francis, Iyoha (2015), “The Effects of Corporate Governance Mechanisms on Firms Dividend Payout Policy in Nigeria”, Journal of Accounting and Auditing, Article ID: 313679.
  • Yakubu, Ibrahim Nandom (2019), “Does Corruption Grease or Sand the Wheels of Bank Profitability in Ghana?”, Cogent Economics & Finance, 7(1), Article No: 1701909.
  • Yakubu, Ibrahim Nandom (2019), “Revisiting the Factors Influencing Corporate Dividend Policy Decisions: Evidence from Listed Banks in Ghana”, Management & Accounting Review (MAR), 18(3), pp. 31-50.
  • Yusof, Yusniliyana - Ismail, Suhaiza (2016), “Determinants of Dividend Policy of Public Listed Companies in Malaysia”, Review of International Business and Strategy, 26(1), pp. 88–99.
Muhasebe ve Finansman Dergisi-Cover
  • ISSN: 2146-3042
  • Yayın Aralığı: Yılda 4 Sayı
  • Başlangıç: 2005
  • Yayıncı: Muhasebe ve Finansman Öğretim Üyeleri Derneği (MUFAD)
Arşiv
Sayıdaki Diğer Makaleler

The Effect of Corporate Governance on Firm Dividend Policy: Evidence from Ghana

Ayhan KAPUSUZOĞLU, Nildağ Başak CEYLAN, İbrahim Nandom YAKUBU

Analysis of Accounting Education at the World’s Leading Universities and Its Comparison with Turkish Universities

Meltem GÜL, İbrahim AKSU