BOARD DYNAMICS, OWNERSHIP, AND DIVIDEND POLICY: TOBIT MODEL EVIDENCE FROM BANGLADESHI COMMERCIAL BANKS

Sk. Alamgir  Hossain; Ummay  Maria

doi:10.63773/jsub.v16i1.22

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Published: 2026-07-27

DOI: https://doi.org/10.63773/jsub.v16i1.22

Keywords:

Ownership Structure, Board Composition, Dividend Payout, Tobit Regression, Bangladeshi Commercial Banks

Sk. Alamgir Hossain

Assistant Professor, Department of Finance, Faculty of Business Studies, Jagannath University, Dhaka, Bangladesh

https://orcid.org/0000-0002-2756-0329

Ummay Maria

Student, Department of Finance, Faculty of Business Studies, Jagannath University, Dhaka, Bangladesh

https://orcid.org/0009-0009-9731-7883

Abstract

Dividend payout decisions in commercial banks are closely associated with board composition and ownership structure. However, the direction and magnitude of these relationships remain uncertain, particularly in emerging economies characterized by concentrated ownership and evolving corporate governance frameworks. In Bangladesh, where the banking sector plays a central role in the financial system and operates under stringent regulatory oversight, understanding the governance determinants of dividend payout represents an important empirical issue. This study examines the effects of board composition and ownership structure on the dividend payout policy of listed commercial banks in Bangladesh. The analysis uses panel data from 19 listed commercial banks, covering the period from 2017 to 2023, yielding 133 firm-year observations. A Tobit regression model is applied to account for the censored nature of dividend payout ratios and to estimate the relationships between governance characteristics and dividend policy. The results indicate a statistically significant model (F = 8.34, p < .01). Dividend payout is positively influenced by board size (1.786, p < .05), board independence (1.360, p < .05), and board meeting frequency (0.951, p < .05), while gender diversity (−0.850, p < .01) negatively influences it. For ownership structure, state ownership (−1.344, p < 01) and foreign ownership (−1.100, p < .05) decrease dividend payout. In contrast, institutional ownership and insider ownership are statistically insignificant (p > .1). Overall, the findings demonstrate that board composition and ownership structure contribute to variations in dividend payout among Bangladeshi listed commercial banks over the study period.

JEL Classification Code: G21, G34, G35.

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Vol. 16 No. 1 (2026): Journal of SUB

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Author Biographies

Sk. Alamgir Hossain , Assistant Professor, Department of Finance, Faculty of Business Studies, Jagannath University, Dhaka, Bangladesh

Sk. Alamgir Hossain is an Assistant Professor in the Department of Finance, Faculty of Business Studies, Jagannath University, Dhaka, Bangladesh. He is an academic and researcher with a strong interest in finance, banking, investment, and related areas of business research. His academic activities focus on teaching, research, and contributing to the development of knowledge in the field of finance. Through his research and scholarly engagement, he aims to contribute to both academic literature and practical understanding of contemporary financial issues.

Ummay Maria , Student, Department of Finance, Faculty of Business Studies, Jagannath University, Dhaka, Bangladesh

Ummay Maria is a student in the Department of Finance, Faculty of Business Studies, Jagannath University, Dhaka, Bangladesh. She is developing her academic knowledge and research interests in finance and related areas of business studies. Her academic journey reflects a strong interest in financial management, banking, investment, and contemporary issues in finance. As a finance student, she is committed to enhancing her analytical, research, and professional skills and contributing to the field through academic learning and research.

How to Cite

Hossain , S. A. ., & Maria , U. . (2026). BOARD DYNAMICS, OWNERSHIP, AND DIVIDEND POLICY: TOBIT MODEL EVIDENCE FROM BANGLADESHI COMMERCIAL BANKS. Journal of SUB, 16(1), 7-18. https://doi.org/10.63773/jsub.v16i1.22

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