Gender Dichotomy of Board Members and Ownership Structure in Dividend Payout: A review

Authors

  • Emma Anuar Universiti Teknologi MARA
  • Rozainun Abd Aziz Universiti Teknologi MARA
  • Maslinawati Mohamad Universiti Teknologi MARA
  • Rugayah Hashim Universiti Teknologi MARA, Cawangan Selangor http://orcid.org/0000-0002-4807-9024

DOI:

https://doi.org/10.21834/e-bpj.v5i13.1954

Keywords:

corporate environment, board composition, gender, dividend payout

Abstract

The purpose of the paper is to examine the effect between gender dichotomy and dividend payout. The objective of the paper is to provide adequate support for research through rigorous reviews of the literature on board dichotomy relative to gender and dividend payout. Board dichotomy of board members relative to gender seems to have a positive association with dividend payout. Ownership structure, especially institutional ownership, seems to have an association with dividend payout compared to other variables of ownership structure. The two corporate governance components have a monitoring role, can be a substitute or a tool for corporate governance improvement, and a signal to investors on dividend payout.

Keywords: corporate environment; board composition; gender; dividend payout

eISSN: 2398-4287 © 2020. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open access article under the CC BYNC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia.
DOI: https://doi.org/10.21834/e-bpj.v5i13.1954

Author Biographies

Emma Anuar, Universiti Teknologi MARA

Doctoral (PhD) student at the Faculty of Accountancy, UiTM, Shah Alam, Selangor, Malaysia

Rozainun Abd Aziz, Universiti Teknologi MARA

Professor of Accountancy, Faculty of Accountancy, UiTM, Shah Alam, Malaysia

Maslinawati Mohamad, Universiti Teknologi MARA

Senior lecturer at the Faculty of Accountancy, UiTM, Shah Alam, Selangor, Malaysia

Rugayah Hashim, Universiti Teknologi MARA, Cawangan Selangor

Professor of Digital Government. Other areas of research interests include policy studies, social and built environments.

References

Abor, J., & Fiador, V. (2013). Does corporate governance explain dividend policy in Sub-Saharan Africa? International Journal of Law and Management, 55(3), 201-225.

Adams, R. B., & Ferreira, D. (2009). Women in the boardroom and their impact on governance and performance. Journal of Financial Economics, 94(2), 291-309.

Adamu, A. I., Ishak, R., & Hassan, N. L. (2017). Is there Relationship between Board Structures and Dividend Policy: Evidence from Nigeria. Journal of Advanced Research in Business and Management Studies, 9(1), 10-20.

Al-Amarneh, A., Yaseen, H., & Iskandrani, M. (2017). Board gender diversity and dividend policy: Case of Jordanian commercial banks (Vol. 13).

Al-Najjar, B., & Kilincarslan, E. (2016). The effect of ownership structure on dividend policy: evidence from Turkey. Corporate Governance: The International Journal of Business in Society, 16(1), 135-161. doi:doi:10.1108/CG-09-2015-0129

Al-Qahtani, T., & Ajina, A. (2017). The Impact of Ownership Structure on Dividend Policy the Evidence from Saudi Arabia.

Al-Rahahleh, A. S. (2017). Corporate governance quality, board gender diversity and corporate dividend policy: Evidence from Jordan. Australasian Accounting, Business and Finance Journal, 11(2), 86-104.

Ali, N. Y., Mohamad, Z., & Baharuddin, N. S. (2018). The impact of ownership structure on dividend policy: Evidence of malaysian listed firms. Journal of Global Business and Social Entrepreneurship (GBSE), 4(10).

Baker, H. K., & A., W. R. (2009). Changing perspectives on distribution policy: The evolution from dividends to share repurchase. Managerial Finance, 35(6), 479-492. doi:doi:10.1108/03074350910956945

Benjamin Samuel, J., Wasiuzzaman, S., Mokhtarinia, H., & Rezaie Nejad, N. (2016). Family ownership and dividend payout in Malaysia. International Journal of Managerial Finance, 12(3), 314-334. doi:10.1108/IJMF-08-2014-0114

Berle, A., & Means, G. (1932). The Modern Corporation and Private Property Macmillan. New York, 2(3), 45-53.

Black, F. (1976). The dividend puzzle. The Journal of Portfolio Management, 2(2), 5-8.

Byoun, S., Chang, K., & Kim, Y. S. (2016). Does corporate board diversity affect corporate payout policy? Asiaâ€Pacific Journal of Financial Studies, 45(1), 48-101.

Chen, J., Leung, W. S., & Goergen, M. (2017). The impact of board gender composition on dividend payouts. Journal of corporate finance, 43, 86-105.

Elmagrhi Mohamed, H. (2017). Corporate governance and dividend pay-out policy in UK listed SMEs. International Journal of Accounting & Information Management, 25(4), 459-483. doi:10.1108/IJAIM-02-2017-0020

Fabozzi, F. J., & Drake, P. P. (2009). What Is Finance? FRANK J. FABOZZI PAMELA PETERSON DRAKE, 3.

Fama, E. F., & Jensen, M. C. (1983). Separation of Ownership and Control. The Journal of Law & Economics, 26(2), 301-325. Retrieved from http://www.jstor.org/stable/725104

Fernández, C., & Arrondo, R. (2005). Alternative Internal Controls as Substitutes of the Board of Directors. Corporate Governance: An International Review, 13(6), 856-866. doi:10.1111/j.1467-8683.2005.00476.x

Gul, F. A., Srinidhi, B., & Ng, A. C. (2011). Does board gender diversity improve the informativeness of stock prices? Journal of Accounting and Economics, 51(3), 314-338.

Gyapong, E., Ahmed, A., Ntim, C., & Nadeem, M. (2019). Board gender diversity and dividend policy in Australian listed firms: the effect of ownership concentration. Asia Pacific Journal of Management, 1-41. Retrieved from https://eprints.soton.ac.uk/431475/

Han, K. C., Lee, S. H., & Suk, D. Y. (1999). Ownership structure and firm performance: international evidence. Multinational Business Review, 7(1), 92.

Jensen, M. C. (2000). Value maximization and the corporate objective function.

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360. doi:https://doi.org/10.1016/0304-405X(76)90026-X

Jurkus, A. F., Park, J. C., & Woodard, L. S. (2011). Women in top management and agency costs. Journal of Business Research, 64(2), 180-186.

Kajola, S. O., Olabisi, J., Soyemi, K. A., & Olayiwola, P. O. (2019). Board Gender Diversity and Dividend Policy in Nigerian Listed Firms. Economic Studies & Analyses/Acta VSFS, 13(2).

Kowalewski, O., Stetsyuk, I., & Talavera, O. (2007). Corporate governance and dividend policy in Poland. Available at SSRN 986111.

Kulathunga, N., & Azeez, A. (2016). The Impact Of Ownership Structure On Dividend Policy: Evidence From Listed Companies In Sri Lanka.

Kumar, J. (2006). Corporate governance and dividends payout in India. Journal of Emerging Market Finance, 5(1), 15-58.

La Porta, R., Lopezâ€deâ€Silanes, F., Shleifer, A., & Vishny, R. W. (2000). Agency problems and dividend policies around the world. The journal of finance, 55(1), 1-33.

Lace, N., Bistrova, J., & Kozlovskis, K. (2013). Ownership type influence on dividend payments in CEE countries. Business: Theory and Practice, 14, 259.

Lintner, J. (1956). Distribution of Incomes of Corporations Among Dividends, Retained Earnings, and Taxes. The American Economic Review, 46(2), 97-113. Retrieved from www.jstor.org/stable/1910664

Madhani, P. M. (2016). Ownership Concentration, Corporate Governance and Disclosure Practices: A Study of Firms Listed in Bombay Stock Exchange. Corporate Governance and Disclosure Practices: A Study of Firms Listed in Bombay Stock Exchange, 7-36.

Mitton, T. (2004). Corporate governance and dividend policy in emerging markets. Emerging Markets Review, 5(4), 409-426.

Modigliani, F., & Miller, M. H. (1963). Corporate income taxes and the cost of capital: a correction. The American Economic Review, 53(3), 433-443.

Mossadak, A., Fontaine, R., & Khemakhem, H. (2016). The Relationship between Ownership Structure and Dividend Policy in an Emerging Market: A Moroccan Study. Universal Journal of Accounting and Finance, 4, 89-95. doi:10.13189/ujaf.2016.040205

Mullen, C. (2019). More Women Directors Means Higher Dividends for Investors. Retrieved from https://www.bloomberg.com/news/articles/2019-09-24/more-women-directors-means-higher-dividends-for-investors

Musallam, S. R., & Lin, C. C. P. (2019). An ownership structures and dividend policy: Evidence from listed plantation companies in malaysia. Management & Accounting Review (MAR), 18(2), 21-46.

Obaidat, A. N. (2018). Ownership Structure and Dividends Policy: Emerging Market Evidence. International Business Research, 11(6), 65-72.

Pucheta-Martínez, M. C., & Bel-Oms, I. (2015). The board of directors and dividend policy: the effect of gender diversity. Industrial and Corporate Change, 25(3), 523-547. doi:10.1093/icc/dtv040

Puchetaâ€Martínez, M. C., & Belâ€Oms, I. (2015). The board of directors and dividend policy: The effect of gender diversity. Industrial and Corporate Change, 25, dtv040. doi:10.1093/icc/dtv040

Qammar, R., Ibrahim, Y., & Alam, M. (2017). Dividend Payment Behaviour: Evidence from Malaysia. Asian Journal of Multidisciplinary Studies, 5, 2321-8819.

Rozeff, M. S. (1982). Growth, beta and agency costs as determinants of dividend payout ratios. Journal of Financial Research, 5(3), 249-259.

Saeed, A., & Sameer, M. (2017). Impact of board gender diversity on dividend payments: Evidence from some emerging economies. International Business Review, 26(6), 1100-1113. doi:https://doi.org/10.1016/j.ibusrev.2017.04.005

Sakınç, İ., & Güngör, S. (2015). The Relationship between Ownership Structure and Dividend: An Application in Istanbul Stock Exchange. Journal of Economics and Development Studies, 3. doi:10.15640/jeds.v3n4a3

Salman Sarwar, M. (2013). Effect of Dividend Policy on Share Holders Wealth: A Study of Sugar Industry in Pakistan. Global Journal of Management And Business Research; Vol 13, No 7-C (2013): Global Journal of Management and Business. Retrieved from https://journalofbusiness.org/index.php/GJMBR/article/view/1027

San Martín Reyna, J. M. (2017). Ownership structure and its effect on dividend policy in the Mexican context. Contaduría y Administración, 62(4), 1199-1213. doi:https://doi.org/10.1016/j.cya.2015.12.006

Sanan, N. K. (2019). Impact of board characteristics on firm dividends: evidence from India. Corporate Governance: The international journal of business in society.

Sawicki, J. (2009). Corporate governance and dividend policy in Southeast Asia pre- and post-crisis. European Journal of Finance, 15, 211-230. doi:10.1080/13518470802604440

Shleifer, A., & Vishny, R. W. (1997). A survey of corporate governance. The Journal of Finance, 52(2), 737-783.

Sindhu, M. I., Hashmi, S. H., & Ul Haq, E. (2016). Impact of ownership structure on dividend payout in Pakistani non-financial sector. Cogent Business & Management, 3(1), 1272815.

Subramaniam, V. (2018). Family ownership and dividend policy: empirical evidence from Malaysia. Int. J. Bus. Manag, 13(5), 112-126.

Van Uytbergen, S., & Schoubben, F. (2015, 2015). The effect of gender diversity on corporate cash policy.

Wei, S.-J., Zhang, X., & Liu, Y. (2017). Home ownership as status competition: Some theory and evidence. Journal of Development Economics, 127, 169-186.

Ye, D., Deng, J., Liu, Y., Szewczyk, S. H., & Chen, X. (2019). Does board gender diversity increase dividend payouts? Analysis of global evidence. Journal of corporate finance, 58, 1-26. doi:https://doi.org/10.1016/j.jcorpfin.2019.04.002

Yusof, Y., & Ismail, S. (2016). Determinants of dividend policy of public listed companies in Malaysia. Review of International Business and Strategy.

Downloads

Published

2020-03-24

How to Cite

Anuar, E., Abd Aziz, R., Mohamad, M., & Hashim, R. (2020). Gender Dichotomy of Board Members and Ownership Structure in Dividend Payout: A review. Environment-Behaviour Proceedings Journal, 5(13), 387–393. https://doi.org/10.21834/e-bpj.v5i13.1954

Most read articles by the same author(s)

<< < 1 2