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Corporate governance and dividend pay-out policy in UK listed SMEs

Mohamed Elmagrhi Orcid Logo, Collins G. Ntim, Richard M. Crossley, John K. Malagila, Samuel Fosu, Tien V. Vu

International Journal of Accounting & Information Management, Volume: 25, Issue: 4, Pages: 459 - 483

Swansea University Author: Mohamed Elmagrhi Orcid Logo

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DOI (Published version): 10.1108/ijaim-02-2017-0020

Abstract

Purpose: This paper examines the extent to which corporate board characteristics influence the level of dividend pay-out ratio using a sample of UK small and medium-sized enterprises (SMEs) from 2010 to 2013 listed on the Alternative Investment Market. Design/methodology/approach: The data is analys...

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Published in: International Journal of Accounting & Information Management
ISSN: 1834-7649 1758-9037
Published: Emerald 2017
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URI: https://cronfa.swan.ac.uk/Record/cronfa53270
first_indexed 2020-01-15T19:28:12Z
last_indexed 2025-05-01T03:47:26Z
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spelling 2025-04-30T15:11:41.8503098 v2 53270 2020-01-15 Corporate governance and dividend pay-out policy in UK listed SMEs 4def956b7e2d996ad0bfbfcb710b7ef6 0000-0003-3803-8496 Mohamed Elmagrhi Mohamed Elmagrhi true false 2020-01-15 CBAE Purpose: This paper examines the extent to which corporate board characteristics influence the level of dividend pay-out ratio using a sample of UK small and medium-sized enterprises (SMEs) from 2010 to 2013 listed on the Alternative Investment Market. Design/methodology/approach: The data is analysed by employing multivariate regression techniques, including estimating fixed effects, lagged effects and two-stage least squares regressions. Findings: The results show that board size, the frequency of board meetings, board gender diversity and audit committee size have a significant relationship with the level of dividend pay-out. Audit committee size and board size have a positive association with the level of dividend pay-out, whilst the frequency of board meetings and board gender diversity has a significant negative relationship with the level of dividend pay-out. By contrast, the findings suggest that board independence and CEO role duality do not have any significant effect on the level of dividend pay-out. Originality/value: This is one of the first attempts at examining the relationship between corporate governance and dividend policy in the UK’s Alternative Investment Market, with the analysis distinctively informed by agency theoretical insights drawn from the outcome and substitution hypotheses. Journal Article International Journal of Accounting & Information Management 25 4 459 483 Emerald 1834-7649 1758-9037 Corporate governance, Corporate board characteristics, Dividend pay-out policy, Outcome versus substitution hypothesis, UK-listed SMEs 2 10 2017 2017-10-02 10.1108/ijaim-02-2017-0020 COLLEGE NANME Management School COLLEGE CODE CBAE Swansea University Not Required 2025-04-30T15:11:41.8503098 2020-01-15T12:10:14.9866545 Faculty of Humanities and Social Sciences School of Management - Accounting and Finance Mohamed Elmagrhi 0000-0003-3803-8496 1 Collins G. Ntim 2 Richard M. Crossley 3 John K. Malagila 4 Samuel Fosu 5 Tien V. Vu 6 53270__16305__fdd0d57fb0334b4f9de6948ae623ddf1.pdf SSRN-id2938420-2.pdf 2020-01-15T12:13:28.9075169 Output 608819 application/pdf Accepted Manuscript true true eng
title Corporate governance and dividend pay-out policy in UK listed SMEs
spellingShingle Corporate governance and dividend pay-out policy in UK listed SMEs
Mohamed Elmagrhi
title_short Corporate governance and dividend pay-out policy in UK listed SMEs
title_full Corporate governance and dividend pay-out policy in UK listed SMEs
title_fullStr Corporate governance and dividend pay-out policy in UK listed SMEs
title_full_unstemmed Corporate governance and dividend pay-out policy in UK listed SMEs
title_sort Corporate governance and dividend pay-out policy in UK listed SMEs
author_id_str_mv 4def956b7e2d996ad0bfbfcb710b7ef6
author_id_fullname_str_mv 4def956b7e2d996ad0bfbfcb710b7ef6_***_Mohamed Elmagrhi
author Mohamed Elmagrhi
author2 Mohamed Elmagrhi
Collins G. Ntim
Richard M. Crossley
John K. Malagila
Samuel Fosu
Tien V. Vu
format Journal article
container_title International Journal of Accounting & Information Management
container_volume 25
container_issue 4
container_start_page 459
publishDate 2017
institution Swansea University
issn 1834-7649
1758-9037
doi_str_mv 10.1108/ijaim-02-2017-0020
publisher Emerald
college_str Faculty of Humanities and Social Sciences
hierarchytype
hierarchy_top_id facultyofhumanitiesandsocialsciences
hierarchy_top_title Faculty of Humanities and Social Sciences
hierarchy_parent_id facultyofhumanitiesandsocialsciences
hierarchy_parent_title Faculty of Humanities and Social Sciences
department_str School of Management - Accounting and Finance{{{_:::_}}}Faculty of Humanities and Social Sciences{{{_:::_}}}School of Management - Accounting and Finance
document_store_str 1
active_str 0
description Purpose: This paper examines the extent to which corporate board characteristics influence the level of dividend pay-out ratio using a sample of UK small and medium-sized enterprises (SMEs) from 2010 to 2013 listed on the Alternative Investment Market. Design/methodology/approach: The data is analysed by employing multivariate regression techniques, including estimating fixed effects, lagged effects and two-stage least squares regressions. Findings: The results show that board size, the frequency of board meetings, board gender diversity and audit committee size have a significant relationship with the level of dividend pay-out. Audit committee size and board size have a positive association with the level of dividend pay-out, whilst the frequency of board meetings and board gender diversity has a significant negative relationship with the level of dividend pay-out. By contrast, the findings suggest that board independence and CEO role duality do not have any significant effect on the level of dividend pay-out. Originality/value: This is one of the first attempts at examining the relationship between corporate governance and dividend policy in the UK’s Alternative Investment Market, with the analysis distinctively informed by agency theoretical insights drawn from the outcome and substitution hypotheses.
published_date 2017-10-02T04:45:45Z
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score 11.089407

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