Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

Do Corporate Governance Mechanisms Matter for Dividend Policy? Evidence from Food and Beverage Industry in Southeast Asian Economies

Author(s): M. Edo S. Siregar, Erwin Vitrianudin, Sholatia Dalimunthe, Suherman, Gatot Nazir Ahmad, Adam Zakaria

This study aims to determine the impact of board independence, board size, diversity gender and board meetings on dividend policy of food and beverage firms in Indonesia, Malaysia and Singapore. The sample was selected from 36 public companies listed on the Indonesia Stock Exchange, the Kuala Lumpur Stock Exchange and the Singapore Stock Exchange. The observation period ranges from 2013 to 2018. Dividend policy is measured using 3 measures, namely 1) total dividend divided by total net income; 2) total dividends per share divided by share price per share; 3) total assets divided by total dividends. Meanwhile, corporate governance uses four indicators: the proportion of board independence, the size of the board of commissioners, the proportion of female commissioners and board meetings. This study uses panel data regression analysis, including the fixed effect model with clustered standard errors. Empirical evidence shows that in general corporate governance mechanism does not have a significant effect on dividend policy, except board meetings significantly affect dividend yield and aggregate dividend.

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