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Jean-Michel Sahut and Frédéric Teulon
''What are the determinants of dividend policies? A new perspective in Emerging Markets''
( 2017, Vol. 37 No.3 )
Despite the growing literature investigating the link between corporate governance and dividend policy of firms, this problematic in emerging countries remains underexplored. In order to fill this gap, this article examines the effects of specific corporate governance mechanisms and ownership structures on dividend policy using a large sample of firms in GCC and East Asian countries over the period 2003-2013. Another crucial point of this study is to determine if firms change their corporate dividend policy during financial crisis. If most of our empirical study results confirms the previous researches, the results for the crisis period changes substantially. For governance mechanisms, the influence of board size, CEO duality and board intensity on dividend decision and/or payouts becomes negative. Moreover, the independence of board members no longer determines dividend policy. For ownership structure, institutional ownership plays always the same role, whereas concentration ownership becomes insignificant and managerial ownership has a significant negative effect on dividend decision and payouts. These results have strong implications for investors and firms that listed in these emerging markets.
Keywords: Corporate governance, Ownership structure, Dividend policy, Financial crisis, emerging market
JEL: G3 - Corporate Finance and Governance: General
Manuscript Received : Jul 24 2016 Manuscript Accepted : Sep 27 2017

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