The Relation between Corporate Governance and Dividend and How Itis Affected by External Financing Constraints

Allam Mohammed Hamdan

Abstract


This study investigates the relation between corporate governance and dividend policy in a sample of 175 firms which resembles 86% of the listed firms in Kuwait Stock Exchange (KSE) in the period 2008-2011. Using a group of parametric and non-parametric tests, the study had empirical evidence that there is a positive relation between corporate governance and dividend policy and it supported the hypothesis that indicates that increasing dividend policy is related to the quality of corporate governance and external financing constraints did not affect that relation.

Keywords


Dividend Policy; Corporate Governance; Kuwait Stock Exchange; Agency Theory; External Financing Constraints

Full Text:

PDF

Refbacks

  • There are currently no refbacks.