Does corporate governance affect dividend policy: Evidence from ASEAN emerging market

Abstract

This research-work uses a survey which comes from three different countries in ASEAN region i.e Indonesian, Thailand and Malaysian. This work integrate whole data from above all countries to examine whether firms that do corporate governance practising will pay higher dividends. This study has two issues: how regulation of stock exchange affects good corporate governance and how corporate governance affects value of the firm. Using OLS regression, our finding shows that good corporate governance practices has positive sign to dividend payout. Our finding may contribute to corporate governance literature. First, result finding support Jensen’s (1986) that states free cash flow not reduce dividends pay out. Second, integrating empirical model from three different countries in ASEAN region.