Moderating Role of Investment Efficiency between Board Diversity and Dividend Policy: Evidence from Pakistan

Main Article Content

Kamran Mohy-Ud-Din
Riaz Ahmad
Hafiz Muhammad Ishaq
Muhammad Akram

Abstract

The purpose of this study is to enhance the understanding in debate of governance demographics by investigate the impact of board diversity on dividend policy and moderating effect of corporate investment efficiency on dividend policy. The sample incorporated in this study comprises of panel data of 77 firms listed in Karachi stock exchange (KSE) during the period of 2012-2019. This study performs a parametric technique regression analysis to measure the investment efficiency and Panel least square models to investigate the association between board diversity and dividend policy. Furthermore, hierarchical explained the results for interaction effect of investment efficiency. This study adds a new finding in the corporate governance through empirical an investigation on the association between board diversity and dividend policy. Results support the interaction effect of investment efficiency between board diversity and dividend policy. Our study suggests that firms involve in high level of efficient investment with diverse ethnic backgrounds and gender in corporate board significantly associated with dividend policy. This study explains the practical implications for the corporate boards in the south Asian culture who enhance the investment efficiency that main goal of finance to enhance the wealth maximization of shareholders in terms of dividends.

Article Details

How to Cite
Mohy-Ud-Din, K. ., Ahmad, R. ., Ishaq, H. M. ., & Akram, M. . (2022). Moderating Role of Investment Efficiency between Board Diversity and Dividend Policy: Evidence from Pakistan. IRASD Journal of Management, 4(2), 286–298. https://doi.org/10.52131/jom.2022.0402.0079
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Articles
Author Biographies

Kamran Mohy-Ud-Din, Iqra University, Karachi, Pakistan

Department of Business Administration

Riaz Ahmad, Bahria University Karachi, Pakistan.

Faculty of Business Studies

Hafiz Muhammad Ishaq, Federal Urdu University of Arts, Science and Technology Islamabad.

Assistant professor 

Muhammad Akram, Bahria University, Islamabad, Pakistan.

Faculty of Business Administration