The impact of corporate governance on dividend policy: A case from pharmaceuticals companies in Pakistan

Abstract

This study observed empirically the impact of corporate governance on dividend policy by using the data of six pharmaceuticals firms listed in Pakistan Stock Exchange (PSX). The data covered five years period from 2014 to 2018. The data were gathered from annual reports of all the sample firms. Multiple regression models were used to check the impact of corporate governance on dividend policy. Results showed the effect of corporate governance on firm dividend policy of pharmaceuticals firms. Board size, board independence, board meetings and gender diversity had significant positive impact on firm’s dividend policy. It means shareholders must look into the following variables before investing in these firms. There is no impact of a firm audit committee on dividend policy. This study helps researchers, academic personnel, shareholders and board of directors.