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Business Review

2019

Dividend smoothing · Corporate governance · Substitution · Pakistan

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Full-Text Articles in Finance

Board Structure And Dividend Smoothing: A Case Of Pakistani Listed Firms, Zahid Ali, Assad Ullah, Arshad Ali Jul 2019

Board Structure And Dividend Smoothing: A Case Of Pakistani Listed Firms, Zahid Ali, Assad Ullah, Arshad Ali

Business Review

The purpose of this study is to empirically examine the effects of ownership and board structure on dividend smoothing for listed non-financial firms for the period 2005-2015 on the Pakistan Stock Exchange (PSX) in the light of agency and information asymmetry theory. Two measures, speed of adjustment and relative volatility are used to estimate dividend smoothing. Tobit regression is used for analyzing the effects of board structure on dividend smoothing measured via speed of adjustment while OLS is used for relative volatility. Additionally, the study applies the technique of principal component analysis (PCA) for board index. The results reveal that …