6. Corporate Governance and Dividend Payouts

This chapter delves into the intricate relationship between corporate governance mechanisms and dividend payouts, focusing on non-financial NIFTY 500 companies. The study examines how different governance attributes, such as board size, independence, and gender diversity, influence dividend policies. It also explores the impact of CEO tenure, firm size, age, growth opportunities, financial condition, and industry concentration on dividend levels and stability. The empirical analysis reveals that board gender diversity and size significantly affect dividend payouts, particularly in the context of CEO tenure and firm growth opportunities. Additionally, the study highlights the role of dividend stability as a bonding mechanism to curb agency conflicts. The findings provide valuable insights into how corporate governance practices shape dividend policies, offering a comprehensive understanding of the interplay between governance mechanisms and financial decisions.