Roles of Corporate Governance and Ownership Structure in Dividend Smoothing Behavior of Asian Firms

by: Shakil Ahmad, Zulfiqar Ali Shah, Arshad Ali Bhatti

The study explores the determinants of dividend smoothing behavior of Asian firms for 2009-2018. The study used a firm's specific characteristics, corporate governance, and ownership structure variables as determinants of dividend smoothing in some Asian markets (Pakistan, India, Sri Lanka, Malaysia, and Singapore). Based on gender critical mass theory, the study finds the presence of gender-critical mass is positive and significantly associated with firm dividend smoothing behavior; whereas, the presence of fewer women depicts a negative or insignificant association with dividend smoothing behavior. The moderating role of gender diversity between family ownership and dividend smoothing is also examined. Further, contrary to the agency theory-based explanations of dividend smoothing, we find that family firms follow a smooth dividend policy. These findings suggest that gender-critical mass, family ownership, and higher market to book value contribute positively to dividend smoothing behavior in the Asian market.

Publication Link: https://tuengr.com/V11A/11A13TM.pdf

The Income Tax Impact on Macroeconomic Indicators: A CGE Inquest for Pakistan Economy

 By: Ghulam Moeen-ud-Din, Arshad Ali Bhatti, Hasnain Abbas Naqvi

This study is to analyze the impact of an increase in income tax on Pakistan economy`s selected indicators like GDP, national income, imports, exports, the balance of trade, private and public sector investment. The assessment utilizes the latest SAM 2010-11, developed by Dorosh et al. (2015), for Pakistan`s economy and uses a Computable General Equilibrium Model, consistent with Lofgren et al. (2002). To investigate the effect, two experiments of 5%, and 10% increase in income tax are performed. The results reveal that increase in direct tax results in improvement with regards to all important macroeconomic indicators. However, rural households’ categories express lesser improvement in comparison to urban households’ groups. Our experiment suggests that an increase in income tax should steadily be implemented to overcome the deficit in the public budget. 

Publication Link: https://qurtuba.edu.pk/jms/default_files/JMS/14_2/14_2_10.pdf