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- Title
FIRM’S CHARACTERISTICS AND BOARD COMPOSITION IMPACT ON DIVIDEND POLICY: A STUDY ON ROLE OF CRISIS (PANDEMIC) PERIOD IN INDIAN CONTEXT.
- Authors
Shah, Avani; Shome, Samik; Bhayani, Sanjay
- Abstract
The global pandemic has weakened the company’s financial stability and slowed the economy. Using 241 Indian-listed companies of the BSE (A Group) for 5 years (i.e., 2017–2021), the study aims to examine the moderating role of the pandemic crisis on the dividend policy and its determinants associations. Applying the regression technique, the study reveals that profitability, liquidity, leverage, firm size and board independence have significant impact on dividend policy for the Indian listed businesses. However, the overall findings of the study suggest that the instability in the economic condition that occurred for the years 2020 and 2021 has weakened the association of free cash flows, the board size, CEO duality, and board independence with the dividend policy in India. The study also reports the positive impact of the crisis on dividend policy; accordingly, it implies that Indian firms may prefer to pay dividends during the crisis period to calm investors and restore their confidence. Relatively a low relationship between free cash flows and the state of the economy with the dividend policy is an indicator of serious agency problems.
- Subjects
BSE Ltd.; DIVIDEND policy; FREE cash flow; DIVERSIFICATION in industry; PANDEMICS; INVESTOR confidence; BUSINESS size; FINANCIAL security
- Publication
Journal of Commerce & Accounting Research, 2024, Vol 13, Issue 2, p50
- ISSN
2277-2146
- Publication type
Article
- DOI
10.21863/jcar/2024.13.2.005