The Impact of Board Composition and Ownership Structure on Dividend Payout Policy: Evidence From India

Abstract

This investigation delves deep into the intricate dynamics underpinning dividend payout policy within Indian firms from 2019 to 2022, focusing on the multifaceted effect of board composition such as board size, independence, CEO duality, frequency of board meetings, state ownership, foreign ownership, gender diversity, and bureaucratic considerations on dividend policy. The study employs regression analysis, encompassing logistic, ordinary least squares (OLS), and fixed effects regressions. Drawing from a rich and extensive dataset of listed Indian family firms, it navigates the complexities inherent in dividend policy determinants. The research highlights a discernible positive correlation between the tendency of companies to pay out dividends and the size of their boards. The findings of this study hold profound significance for stakeholders, including managers, investors, policymakers, and regulators, offering nuanced insights into dividend determinants within emerging markets.