Board governance as a driver of dividend payments: New evidence from Oman’s energy sector
DOI:
https://doi.org/10.65453/ijar.v11i1.1412Keywords:
Dividend payout, corporate governance, Board meetings, board size, board gender board nationality, board diversity, board independence, Oil and gas sector, agency theory, outcome approach, Oman.Abstract
This study investigates the influence of board attributes on dividend payout decisions in the post-COVID era among oil and gas companies of Oman. The secondary data of seven companies were collected for a period of 2020-2024. Using a hierarchical regression approach, the impact of independent variables board size, independence, meetings, gender diversity and nationality diversity on the dependent variable dividend payout was investigated by controlling the firm size. Board meetings showed a statistically significant positive correlation with dividend payout, indicating likelihood of higher dividends on account of higher number of board meetings. Even though statistically insignificant board gender diversity and nationality diversity also showed a positive association with dividend payout. The other two variables, board size and independence showed a negative correlation. The study findings partially supported outcome approach of agency theory and offered practical insights for companies, investors and regulators for enhancing governance practices promoting stakeholder outcomes.
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