The impact of board composition on dividend payout policy: evidence from Turkey

Examining the effect of board composition on dividend payment policies was the aim of this study. A sample of non-financial companies listed between 2016 and 2020 on the Borsa Istanbul Stock Exchange (BIST) was used in the study. To reflect board composition in the study, the following metrics were used: board size (BSIZE), board independence (BIND), board expertise (BEXP), and board age diversity (BAGE). In addition, a number of control variables were incorporated, such as profitability (PROFTA), firm age (FAGE), and firm size (FSIZE). The dividend per share, which indicated the company's dividend distribution policy, served as the study's dependent variable. The findings highlight the significance of board composition in explaining dividend policy variations among Turkey firms. More specifically, the frequency of board size, firm age, and board age diversity are all positively and significantly correlated with the propensity to pay dividends, while the degree of board expertise and profitability are negatively correlated with dividend policy. The research's conclusions are consistent with the agency theory, and resource dependence theory of dividend policy.