Impact of Corporate Governance and Corporate Social Responsibility on Dividend Payout: Mediating role of Accounting Conservatism

Abstract

The study aims to explore the subtle dynamics between these elements and their impact on financial results. Using a large dataset from a variety of asset management companies and brokerage houses, the study examines how corporate governance practices—such as board composition, CEO remuneration, and shareholder rights—affect dividend distribution choices. Additionally, the research assesses how these financial organizations' dividend policies are affected by CSR initiatives. Examining accounting conservatism's mediating function in this relationship is one of the main points of emphasis. It is hypothesized that the relationship between corporate governance, CSR initiatives, and dividend payout decisions is moderated by accounting conservatism, which is typified by careful financial reporting practices. Quantitative analysis is used in the research process, and sophisticated statistical methods like structural equation modelling and regression analysis are employed. This makes it possible to examine both direct and indirect impacts while adjusting for possible confounding factors. The study's conclusions should highlight the complex interactions among accounting conservatism, corporate governance, CSR, and dividend payment choices in the finance industry. These findings have ramifications for strategic financial management since they highlight how crucial strong governance frameworks and socially conscious behavior are to determining dividend policy and financial outcomes. Overall, by providing increased awareness of the mechanisms guiding dividend payment decisions in brokerage houses and asset management organizations, this research adds to the body of knowledge already in existence and helps stakeholders make decisions that will lead to sustainable financial outcomes.