The Effect of Corporate Governance on Firm Dividend Policy: Evidence from Ghana

Abstract

The purpose of this research is to reveal at the influence of board independence on dividend policy of firms listed on the Ghana Stock Exchange. We employ a panel dataset covering the period 2008-2018 and apply the generalized method of moments technique. The results reveal that dividend per share is positively and significantly driven by board independence. We also find that larger audit committees are more likely to result in higher dividend payouts. On the other hand, frequent board meetings and remuneration committees reduce dividend payments. We further document that firm age has a significant positive impact on dividend payment. The findings suggest that increasing the proportion of non-executive directors will help preserve shareholders' interest by allowing for higher dividend payments