Investigating the impact of four proxies of agency costs on dividend policy in the context of listed companies of small island economies: a case study of Mauritius

Article

Boolaky, Pran Krishansing. 2009. "Investigating the impact of four proxies of agency costs on dividend policy in the context of listed companies of small island economies: a case study of Mauritius." International Journal of Accounting and Finance. 1 (3), pp. 276-301. https://doi.org/10.1504/IJAF.2009.026624
Article Title

Investigating the impact of four proxies of agency costs on dividend policy in the context of listed companies of small island economies: a case study of Mauritius

ERA Journal ID41212
Article CategoryArticle
Authors
AuthorBoolaky, Pran Krishansing
Journal TitleInternational Journal of Accounting and Finance
Journal Citation1 (3), pp. 276-301
Number of Pages26
Year2009
Place of PublicationUnited Kingdom
ISSN1752-8224
1752-8232
Digital Object Identifier (DOI)https://doi.org/10.1504/IJAF.2009.026624
Web Address (URL)http://www.inderscience.com/search/index.php?action=record&rec_id=26624&prevQuery=&ps=10&m=or
Abstract

The study investigates the impacts of four agency costs on the dividend policy of firms listed on the Stock Exchange of Mauritius Ltd. (SEM). It uses least squares regression to test and examine the impact of four Agency Cost Variables (ACVs), namely ownership dispersion, insider ownership, Free Cash Flow (FCF) and leverage ratio, on the Dividend Payout Decisions (DPOD) in the Mauritian-listed companies. Dividend payout is used as the dependent variable and the four mechanisms to control agency costs as
independent variables. This study reports that in the context of Mauritius, FCF is significantly related to the dividend payout ratio whilst leverage and ownership dispersion are very weakly related. However, this study also reveals that insider ownership is not related to dividend policy. Therefore, the results from this study support the conclusion reached by earlier empirical researches on FCF but do not affirm the same conclusions as regards leverage, ownership dispersion and insider ownership.

Keywordsagency cost; dividend policy; listed companies
ANZSRC Field of Research 2020350103. Financial accounting
380109. Industry economics and industrial organisation
380304. Microeconomic theory
Public Notes

Files associated with this item cannot be displayed due to copyright restrictions.

Byline AffiliationsSchool of Accounting, Economics and Finance
Permalink -

https://research.usq.edu.au/item/9z512/investigating-the-impact-of-four-proxies-of-agency-costs-on-dividend-policy-in-the-context-of-listed-companies-of-small-island-economies-a-case-study-of-mauritius

Log in to edit
  • 2336
    total views
  • 9
    total downloads
  • 1
    views this month
  • 0
    downloads this month

Export as

Related outputs

Investigating the relationship between the elements of the IFRS conversion cost in the context of small island economies (Mauritius)
Boolaky, Pran Krishansing. 2010. "Investigating the relationship between the elements of the IFRS conversion cost in the context of small island economies (Mauritius) ." International Journal of Managerial and Financial Accounting. 2 (3), pp. 228-239. https://doi.org/10.1504/IJMFA.2010.034116
Determinants of the strength of accounting and reporting standards: A cross-country study
Boolaky, Pran Kishansing, Krishnamurti, Chandrasekhar and Hoque, Ariful. 2013. "Determinants of the strength of accounting and reporting standards: A cross-country study." Australasian Accounting Business and Finance Journal. 7 (4), pp. 17-36. https://doi.org/10.14453/aabfj.v7i4.3
Corporate governance compliance and disclosure in the banking sector: using data from Japan
Boolaky, Pran Krishansing and Thomas, Kim. 2010. "Corporate governance compliance and disclosure in the banking sector: using data from Japan ." Balachandran, Balasingham (ed.) Inaugural Finance and Corporate Governance Conference (FCGC 2010). Melbourne, Australia 07 - 09 Apr 2010 Melbourne, Australia. https://doi.org/10.2139/ssrn.1536879
Accounting developments in Africa: a study of the impact of colonisation and the legal systems on accounting standards in sub-Saharan African countries
Boolaky, Pran Krishansing. 2004. "Accounting developments in Africa: a study of the impact of colonisation and the legal systems on accounting standards in sub-Saharan African countries." Delhi Business Review. 5 (1), p. 123.
Determinants of accounting standards in the Southern African Development Community (SADC)
Boolaky, Pran Krishansing. 2003. "Determinants of accounting standards in the Southern African Development Community (SADC)." 2003 British Accounting Association, South Eastern Accounting Group Conference (BAA-SEAG) . London, United Kingdom Sep 2003 London, United Kingdom.
Corporate governance in the financial services sector of small island economies: a case study of Mauritius
Boolaky, Pran Krishansing. 2007. "Corporate governance in the financial services sector of small island economies: a case study of Mauritius." Corporate Ownership and Control. 4 (3), pp. 266-278.
The relevance and applicability of IAS in Madagascar: the perception of accounting practitioners
Boolaky, Pran Krishansing. 2003. "The relevance and applicability of IAS in Madagascar: the perception of accounting practitioners ." ICFAI Journal of Accounting Research. 2 (4), pp. 83-93.
Lifting the veil of GDP and re-defining the concept of development in the context of accounting
Boolaky, Pran Krishansing. 2004. "Lifting the veil of GDP and re-defining the concept of development in the context of accounting." IUP Journal of Applied Economics. 3 (6), pp. 60-75.
A historical analysis of the accounting development in Madagascar between 1900 to 2005: the journey from accounting plan to IFRS
Boolaky, Pran and Jallow, Kumba. 2008. "A historical analysis of the accounting development in Madagascar between 1900 to 2005: the journey from accounting plan to IFRS." Journal of Applied Accounting Research. 9 (2), pp. 126-144. https://doi.org/10.1108/09675420810900793
Measuring De Jure harmonisation: a content analysis of the accounting standards of three countries: South Africa, Mauritius and Tanzanian and International Financial Reporting Standards
Boolaky, Pran Krishansing. 2006. "Measuring De Jure harmonisation: a content analysis of the accounting standards of three countries: South Africa, Mauritius and Tanzanian and International Financial Reporting Standards ." Journal of Applied Accounting Research. 8 (2), pp. 110-146.
The importance and usefulness of financial reporting of municipalities: a case study of municipalities in Mauritius
Boolaky, Pran Krishansing. 2004. "The importance and usefulness of financial reporting of municipalities: a case study of municipalities in Mauritius." International Journal of Accounting, Auditing and Performance Evaluation. 1 (3), pp. 342 -362. https://doi.org/10.1504/IJAAPE.2004.005925