Impact of Corporate Governance Attributes on Dividend Payout: A Study of Indian Corporate Sector
DOI:
https://doi.org/10.15379/ijmst.v9i2.3161Keywords:
Corporate Sector, Dividend Policy, Impact, Indian Corporate Sector.Abstract
The paper examines the impact of corporate governance attributes on the dividend payout of Indian corporate sector. The study considered corporate firms from five major sectors which are pharmaceutical, FMCG, automobile, textile and IT. The top fifteen firms have chosen for the sample which are listed on S&P BSE Index from the year 2010-11 to 2019-20. The collected data has been analyzed using GLS regression technique. Some variables of corporate governance such as board size, board independence and ownership structure taken as independent variables and dividend payout ratio is considered as dependent variable. The results of the study exhibited that there is significant and positive impact of corporate governance elements on dividend policy except board independence which is negatively associated to dividend payout. The study revealed that corporate governance practices aid to eliminate agency problem between management and shareholders.