Corporate governance and dividend policy: Evidence from Colombia

Samuel Mongrut Montalvan; Carlos Mario Ramirez Arango; Julian Usma Patiño

doi:10.21919/remef.v18i4.917

Corporate governance and dividend policy: Evidence from Colombia

Samuel Mongrut Montalvan, Carlos Mario Ramirez Arango, Julian Usma Patiño

Research output: Contribution to journal › Article in a journal › peer-review

Abstract

We study the impact of the adoption of the corporate governance code denominated Country Code (CC), on the dividend payout ratio of non-financial firms that report to the Superintendency of Companies in Colombia. Using an unbalanced panel data model with a sample of 605 companies from 1997 until 2022, we find that companies that adopted voluntarily the Country Code of corporate governance have paid, on average, higher dividends than those that did not. In addition, the impact of the adoption of the Country Code is amplified by its quality, meaning that higher dividend payments are attached to better Corporate Governance quality. We did not find the impact of the two reforms to the Country Code in 2007 and 2014, which implies that these reforms didn’t help companies to distribute more dividends in Colombia.

Translated title of the contribution	Gobierno corporativo y política de dividendos: Evidencia de Colombia
Original language	English
Article number	e917
Number of pages	19
Journal	Revista Mexicana de Economía y Finanzas
Volume	18
Issue number	4
DOIs	https://doi.org/10.21919/remef.v18i4.917
State	Published - 30 Sep 2023

Bibliographical note

Publisher Copyright:
© 2023 Instituto Mexicano de Ejecutivos de Finanzas. All rights reserved

Keywords

Corporate governance
Divided policy
Ownership concentration
Divided Policy
Corporate Governance
Ownership Concentration

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.21919/remef.v18i4.917License: CC BY-NC

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title = "Corporate governance and dividend policy: Evidence from Colombia",

abstract = "We study the impact of the adoption of the corporate governance code denominated Country Code (CC), on the dividend payout ratio of non-financial firms that report to the Superintendency of Companies in Colombia. Using an unbalanced panel data model with a sample of 605 companies from 1997 until 2022, we find that companies that adopted voluntarily the Country Code of corporate governance have paid, on average, higher dividends than those that did not. In addition, the impact of the adoption of the Country Code is amplified by its quality, meaning that higher dividend payments are attached to better Corporate Governance quality. We did not find the impact of the two reforms to the Country Code in 2007 and 2014, which implies that these reforms didn{\textquoteright}t help companies to distribute more dividends in Colombia.",

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AB - We study the impact of the adoption of the corporate governance code denominated Country Code (CC), on the dividend payout ratio of non-financial firms that report to the Superintendency of Companies in Colombia. Using an unbalanced panel data model with a sample of 605 companies from 1997 until 2022, we find that companies that adopted voluntarily the Country Code of corporate governance have paid, on average, higher dividends than those that did not. In addition, the impact of the adoption of the Country Code is amplified by its quality, meaning that higher dividend payments are attached to better Corporate Governance quality. We did not find the impact of the two reforms to the Country Code in 2007 and 2014, which implies that these reforms didn’t help companies to distribute more dividends in Colombia.

KW - Gobierno corporativo

KW - Política de dividendos

KW - Concentración de la propiedad

KW - Corporate governance

KW - Divided policy

KW - Ownership concentration

KW - Divided Policy

KW - Corporate Governance

KW - Ownership Concentration

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Corporate governance and dividend policy: Evidence from Colombia

Abstract

Bibliographical note

Keywords

UN SDGs

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Corporate governance and dividend policy: A previous evidence from Colombia

Corporate Governance and Dividend Policy in Colombia

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